Bharti Airtel has Made an Offer that Jio and Vi Can’t Refuse

Bharti Airtel, India’s second-largest telecom operator, recently implemented the prepaid tariff hike in two circles – Haryana and Odisha. Now, this is old news. What would really matter now is what Jio and Vodafone Idea (Vi) will do. Airtel would require Jio and Vi to push for the tariff hike as well; otherwise, it will have no other option but to roll back the Rs 99 plan it has removed for now from the above-mentioned circles. However, it may be too good an opportunity for Jio and Vi to miss out on. While Jio wants to keep its tariffs lower than everyone else in the industry, the telco definitely needs a tariff hike to boost revenues.

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Vodafone Idea again would require the tariff hike to boost revenues and average revenue per user (ARPU) figure fast. According to ICICI Securities, this is an offer for the competitors of Airtel that they can’t refuse. Jio can raise its tariffs but still keep it 20% more affordable than what Airtel and Vi are offering. While Vi can delay the tariff hike, it is also worth considering that the telco would want to make more money to be able to sustain operations and promote expansion.

The telecom operators in India have been offering services to customers at one of the most affordable rates for a very long time. The telcos would surely look to change that in the coming years as their expenditure on networks and developing new technologies goes up.