How Big Will the Next Tariff Hike Be?

Airtel believes that the telecom sector in India doesn’t have healthy benefits. What the telco means is that the investment for the companies is extremely high, while the returns are very low.

Highlights

  • Telecom operators in India have been waiting eagerly for the central elections or the Lok Sabha elections to be over.
  • The last time the Indian telecom sector witnessed a tariff hike, there was an increase of around 20-25% in the pricing of almost every plan.
  • The telcos will increase the tariffs by 15-17%.

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how big will the next tariff hike

Telecom operators in India have been waiting eagerly for the central elections or the Lok Sabha elections to be over. This is because they can only go for tariff hikes after that. The last time the Indian telecom sector witnessed a tariff hike, there was an increase of around 20-25% in the pricing of almost every plan.




This time, according to an analyst (via RepublicWorld), the telcos will increase the tariffs by 15-17%. The elections will be over around June 1, 2024. The telco that is likely going to take the lead in increasing tariffs will be Bharti Airtel. While Airtel has been slowly increasing baseline tariffs in a phased manner, the telco has time and again affirmed its intention to raise tariffs.

Read More - Vodafone Idea Brings New Rs 19 Plan

Airtel believes that the telecom sector in India doesn’t have healthy benefits. What the telco means is that the investment for the companies is extremely high, while the returns are very low. With the next tariff hike, Airtel is likely going to cross the ARPU (average revenue per user) figure of Rs 250 before the end of FY25.

It is also worth noting that none of the telcos are monetising 5G yet. But the day isn’t too far when consumers will have to pay a little extra to consume 5G network services. For now, it is free for both prepaid and postpaid consumers.

Read More - Jio Leads Wireline Subscriber Addition in February 2024: TRAI

Vodafone Idea (Vi) also needs the tariff hike badly. The telco’s ARPU is growing very slowly. The same is the case for Reliance Jio. Without a tariff hike, these telcos will not be able to improve ARPU majorly like Airtel because they have a high quantum of low-paying customers in their subscriber mix. For Jio, the ARPU growth has been flat for several consecutive quarters now

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Recent Comments

TheAndroidFreak :

Airtel wants 300 INR ARPU from 4G customers and 500 INR ARPU from 5G customers. So 2999 doesn't make sense.…

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TheAndroidFreak :

Let's see. Just few days before we see 4999 from Airtel for yearly pack.

Vodafone Idea CEO Believes in Paying More for Using More

Faraz :

Other than some additional benefits, their plan structure as well as price stays same as Airtel. ( Except for 2999…

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Shivraj Roy :

More like“giving less charging more”

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