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Telecom Operators Are Increasing Tariff Prices: Know Why And When

(Last Updated On: May 26, 2022)

Reliance Jio, Airtel, and Vodafone-Idea are planning to increase tariffs later this year to increase average revenue per user by 10 to 12 percent. This development comes after a new report claims that the hike will take place this year near Diwali.

The report also added that despite the increase in prices all telecom operators are expected to add 30 to 40 million new users in the ongoing financial year. In addition, the report in the ET claims that India’s third-largest telecom operator has not lost customers despite increasing prices in the last November and December last year.

The report also states that tariff hikes and subscriber gains might help Reliance Jio, Vodafone-Idea, and Airtel to increase the overall average revenue per user close to 10 percent by 2023. It said that the ARPU of the Reliance Jio, Airtel, and Vodafone-Idea are expected to increase by Rs. 185, Rs. 200, and Rs. 135 respectively.

Telecom Operator’s Comments On The Tariff Hike

Airtel Tariff Plans

It is important to note that Bharti Airtel MD and CEO for India and South Asia Gopal Vittal states that Airtel will go increase tariff prices in 2022.

“I do expect a tariff hike sometime in 2022. I don’t think it’s going to happen in the next 3-4 months because the SIM consolidation and growth needs to come back but I do expect another round of tariff increase,” Vittal said during the earnings call of the company.

Similarly, Vodafone Idea MD and CEO Ravinder Takkar has also said the same earlier during the company’s earnings call. “We would expect that it’s possible that there could be another price hike in 2022 but certainly at some point the price hike will take place,” he had said. For the unaware, Airtel, Reliance Jio, and Vodafone-Idea hiked their tariffs prices last year from November to December.

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