Bharti Airtel and Vodafone Idea Have Room to Raise Tariffs By 30%

In the upcoming days, all the telecom operators in the industry are going to raise tariffs. The first move was made by Vodafone Idea, which announced a hike in tariffs starting December 1. Next up, Bharti Airtel, Reliance Jio and BSNL have also announced that they would be increasing the prices of their plans in the coming weeks. But, now the next question in the minds of the consumers is exactly how much will the prices of these tariffs go up. Now, although we will get to see how much the prices increase in the coming days, as per an ET Telecom report on the matter and according to the analysts, Bharti Airtel and Vodafone Idea have a room for increasing tariffs by 30% over the next three months. For a telecom sector which has now been distressed for long, this marks a turn towards recovery as the telecom companies will finally have a chance of increasing their earnings and lifting the ARPU.

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Industry Back On the Path of Recovery

It is worth noting that by introducing a 6 paise per minute charge on outgoing calls to other networks, Reliance Jio has already made a hike of 15% over its plans, which leaves it less headroom for hiking its prices further. Not only this, but over the period of time, the gap between the pricing of Reliance Jio, which has been the most competitive in the industry, and that of other telecom operators has narrowed down. On the other hand, since Bharti Airtel and Vodafone Idea have not made any introduction of IUC plans or any hike in the past months, they have a little buffer to increase tariffs, by almost as much as 30%.