Mobile Recharge May Become More Expensive Again, Know How Much Your Costs Could Rise
IIE DIGITAL DESK ; New Delhi: Mobile recharge plans could become more expensive again, putting additional pressure on consumers’ pockets. According to a recent report, telecom companies in India may increase the prices of their tariff plans by around 12 to 15 per cent over the next four to five months. The possibility of another tariff hike has emerged at a time when the number of major telecom players in the market has declined, creating conditions that could support higher tariffs.
Centrum Institutional Research, tariff increases could take place in the Indian telecom sector within the next four to five months. The report suggests that the reduction in the number of major operators in the market has created a favourable environment for telecom companies to raise tariffs.
The country’s three major telecom operators, Bharti Airtel, Reliance Jio and Vodafone Idea Limited (VIL), could also see an improvement in their average revenue per user, or ARPU, during the second quarter of the current financial year. According to the report, ARPU could rise by around 0.8 per cent to 2 per cent on a quarterly basis.
Several factors could contribute to this improvement, including the continued migration of customers from 2G services to 4G and 5G networks, an increase in the number of postpaid subscribers and the higher number of days in the quarter. The report also indicates that Reliance Jio and Bharti Airtel could increase their subscriber market share compared with Vodafone Idea.
Reliance Jio is expected to add around 8 million new subscribers during the quarter, according to the Centrum report. Bharti Airtel could add approximately 3 million new Indian wireless subscribers, while Vodafone Idea may see its subscriber base increase by around 1 million.
The report has also highlighted the ongoing expansion of telecom networks across the country. Reliance Jio and Bharti Airtel have already extended their 5G services to more than 95 per cent of the districts in India. Their next major focus is expected to be on increasing the number of 5G devices connected to their networks and encouraging more customers to shift towards next-generation mobile services.
Vodafone Idea, meanwhile, currently has a 5G network presence in around 200 cities and is gradually expanding its coverage. The company is expected to continue focusing on extending its 5G footprint as it works to strengthen its position in the highly competitive telecom market.
For Reliance Jio, the report estimates that the subscriber base could increase by around 8 million on a quarterly basis. This could take the company’s total subscriber base to approximately 541 million. At the same time, Jio’s ARPU could rise by around 1 per cent to approximately Rs 218 per month.
Bharti Airtel could add around 3 million subscribers, taking its total customer base to approximately 380 million. The continued migration of customers from 2G to 4G is expected to support the company’s ARPU, which could increase by around 2 per cent to Rs 269 per month. According to the report, this could be the highest ARPU among the country’s major telecom operators.
Airtel’s revenue could also increase by around 3.1 per cent on a quarterly basis, according to the projections. The company’s continued 4G and 5G expansion and its ability to attract higher-value customers are expected to remain important factors behind its financial performance.
Vodafone Idea could see its subscriber base increase by around 1 million to approximately 194 million. Its average revenue per user is projected to rise by around 0.8 per cent to Rs 178 per month. However, the company’s future performance is expected to remain closely linked to its capital expenditure plans and progress in raising funds.
The possibility of a 12 to 15 per cent tariff hike therefore comes at a time when telecom companies are continuing to invest heavily in network expansion and next-generation services. If the projected increase is implemented, customers could face higher monthly expenses for mobile connectivity and data services.
For consumers, another tariff hike could mean that existing recharge plans may become more expensive over the coming months. With the shift from basic 2G services towards 4G and 5G becoming increasingly widespread, telecom companies are also looking to improve revenue from their existing customer base.
The proposed increase remains a projection based on the industry report and does not mean that all telecom operators have officially announced a 12 to 15 per cent hike. Customers will have to wait for individual companies to announce any changes to their tariff plans.
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