Mobile Tariff Hike : Mobile users in India may soon get a shock. The burden of expensive tariffs is going to increase on mobile customers. Telecom companies may make mobile recharge plans expensive by the end of 2025.
Experts associated with the telecom sector say that prepaid and postpaid plans may increase by 10 to 20 percent around November-December 2025. This will be the fourth time in the last six years that major telecom companies will increase their tariffs.
Prepaid recharge plans will become 10 to 20 percent more expensive
The reason behind increasing the tariff plans is to improve earnings and profits amid rising costs and 5G network expansion. Companies like Bharti Airtel, Reliance Jio and Vodafone Idea are investing heavily in network expansion, spectrum purchase and regulatory charges. Vodafone Idea has recently received approval to convert spectrum dues of Rs 36,950 crore into government stake, increasing the government’s stake from 22.6% to about 49%.
Why will companies make plans expensive?
According to a report by Bernstein Research, this increase is part of a rate repair strategy to stabilize the earnings of telecom companies. Experts estimate that tariffs will continue to increase gradually in the next few years and the average revenue per user (ARPU) may reach Rs 300 by 2027.
In the last quarter of 2024, Airtel’s ARPU grew by 5.2% to Rs 245, while Jio’s was Rs 203 and Vodafone Idea’s was Rs 163. These figures may go up further with the increase in 5G services and data usage.
Mobile prepaid and postpaid plans will get costlier by December
Vodafone Idea CEO Akshay Mundra says that in a market like India, tariff hikes are necessary every 9 months so that network quality is maintained and new technologies like IoT and enterprise services can be improved. Mobile customers should be prepared for an increase in mobile recharge plans at the end of the year, although companies believe that this step is necessary to provide better network and service across the country.
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