Recharge plans will be expensive again
More than 120 crore mobile users of the country may once again get a big shock. Telecom companies can make recharge plans expensive by the end of this year. According to a report revealed, telecom companies can increase the rates of mobile plans by 10 to 20 percent. This will be the fourth large price hike in the last 6 years by telecom companies. Earlier in July last year, private telecom companies had increased their mobile plan rates by up to 25 percent.
Plan will be 10 to 20 percent expensive plans
According to the Money Control report, the telecom industry analysts believe that telecom companies are making a big investment on infrastructure. Also, funds are being pressurized on telecom companies due to expenses incurred in regulatory needs, licenses etc. Recently, Vodafone-Idea has demanded the government to convert spectrum dues worth Rs 36,950 crore to equity. In this way, the government’s stock in Vodafone-Idea will increase from 22.6 percent to 49 percent.
The analyst says that we are expecting an increase in tariffs by 10 to 20 percent till November-December this year. With this price hike, telecom companies will be able to increase their average revenue per user i.e. ARPU, after which the visibility of revenue will start appearing in this sector. After this price hike, the ARPU of both the country’s big telecom companies Indian Airtel and Reliance Jio can grow firmly between 2025 and 2027.
Large scale investment for network expansion
At the same time, experts say that Vodafone-Idea should increase their plan rates immediately so that 4G expansion and 5G roll out can be covered. For this, the company needs big investment. Despite the price hike in July last year, the operation of Vodafone-Idea has not been done properly. The main reason for this has been a large -scale investment to decline in subscriber base and launch 5G.
Another brokerage firm Ambit says that we are expecting a tariff of up to 15 percent by December. However, the government has also supported telecom companies, due to which the recharge plan rates in India are the lowest in the world despite the price hike. Research analyst says that in the coming time, telecom companies will continue to increase the rates of recharge plans in more regular intervals, so that the revenue does not be damaged despite investing in infrastructure.
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