Recharge plans expensive: Recharge plans may get expensive by December, telecom companies may increase tariffs – Details
Recharge plans expensive: In the month of July last year, telecom companies had increased the prices of recharge plans by up to 25 percent. Now it seems that the companies can hike tariffs this year as well. According to a report, Airtel, Jio and Vi may increase the prices of tariff plans by the end of this year. Airtel-Jio can further strengthen their position in the market.
Recharge plans expensive: Indian customers may soon have to spend more than before for telecom services. According to a report, telecom operators like Bharti Airtel, Reliance Jio and Vodafone Idea (Vi) may start periodic tariff hikes by the end of 2025 as part of their recent tariff repair efforts. So that, revenue visibility can be increased. The market is going to be dominated by a few big companies, with Airtel and Jio further strengthening their position and capturing most of the market.
Tariff hike in 2025
According to a report by Moneycontrol, citing analysis by global brokerage firm Bernstein, telecom providers in India may increase tariffs by 10 to 20 percent by December 2025. This could be the fourth major price hike in the last six years, with the most recent hike taking place in July 2024, when companies raised tariffs by 25 percent. These hikes were said to be to strengthen 4G and meet the increasing capital needs of telcos following the expansion of 5G technology.
The report said, ‘We expect tariff hikes in November-December 2025, in line with the ongoing tariff repair efforts in the industry. This move could act as a much-needed catalyst for the sector and enhance revenue visibility.’
The brokerage firm has reportedly predicted mid-to-high-teen revenue growth for Airtel and Jio over the 2025-27 period, led by steady subscriber additions and strong average revenue per user (ARPU) growth. Instead of relying on adding new customers, telecom operators are also focusing on improving the revenue share they get from existing users.
Meanwhile, Vi is reportedly facing financial crunch, though some of the problems have eased after the government agreed to convert the company’s spectrum dues into equity shares, increasing the government’s stake from 22.6 per cent to 48.99 per cent.
The report further said, “The equity conversion reflects the government’s commitment to maintaining a three-player market structure and increases the likelihood of price discipline and tariff hikes in the future.”
Bernstein reportedly expects a 15 per cent tariff hike in December 2025, followed by annual hikes predicted from 2026 to 2033. While tariff hikes are speculated to be more regular, their magnitude may be lower than in the 2019-2025 period. The tariff hikes are expected to help telecom operators achieve a 10 per cent tariff compound annual growth rate (CAGR).
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