India's third-biggest mobile phone carrier by customers, Reliance Communications has increased tariffs on some of its plans by more than 20 per cent.

The company also said that it cut promotional offers and discounts on some plans by as much as 65 per cent. The company, like several other India telecom service providers, is facing huge debt burden and high cost of airwaves. Reliance Communications is looking to reduce discounts and increase prices in order to improve margins.

The company announced an increase in prices of services offered under special pre-paid vouchers called Commitment Plans. The company had earlier increased the prices for all normal customers from 1.2 paise a second to 1.5 paise a second. At present, about 40 per cent of the pre-paid purchase special vouchers with discounts and the price hike would allow the company improve margins.

The shares of the company rose 2.5 per cent to a high of 112.80, which is its highest level since pril 7, 2011. The shares were trading 1.5 per cent higher at Rs. 111.60 this morning at the time of reporting. Reliance Communications shares have risen as much as 80 per cent since Ambani brothers announced a Rs. 1,200 crore deal for sharing fibre optic network.