Mobile Tariff Hike: Mobile users in India may soon get a shock. The burden of expensive tariffs on mobile customers is going to increase. Telecom companies can make mobile recharge plans expensive by the end of 2025. Experts associated with the telecom sector say that around November-December 2025, prepaid and postpaid plans may increase by 10 to 20 percent. This will be the fourth time in the last six years when big telecom companies will increase their tariffs.
Prepaid recharge plans will become expensive by 10 to 20 percent
Tariff plans are the reason for the rising costs and improving profits between the rising cost and 5G network expansion. Companies like Bharti Airtel, Reliance Jio and Vodafone Idea are investing heavy in network enhancing, spectrum procurement and regulatory charges. Vodafone Idea has recently approached the government’s share of spectrum dues of Rs 36,950 crore, causing the government to increase 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 bring stability in the earnings of telecom companies. Expert estimates that the tariff will continue to increase gradually in the next few years and by 2027 average per user income (ARPU) can reach Rs 300.
Airtel’s ARPU rose 5.2% to Rs 245 in the last quarter of 2024, while Jio stood at Rs 203 and Vodafone Idea Rs 163. With 5G services and data usage growing, these figures can go up further.
Mobile prepaid and postpaid plans will be expensive by December
Akshay Mundra, CEO of Vodafone Idea, says that there is a need to increase tariff every 9 months in a market like India, so that network quality is maintained and new technology like IOT and enterprise services can be improved. Mobile customers should be ready to increase mobile recharge plans at the end of the year, although companies believe that this step is necessary to provide better networks and service across the country.
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