India’s top private telecom companies, such as Reliance Jio, Bharti Airtel and Vodafone Idea, are expected to raise prices for both prepaid and postpaid plans by up to 20% next year. These possible price hikes, part of regular tariff revisions, are likely to sharply increase earnings for the telecom industry.
’16-20% tariff hike across 4G/5G plans’
Mobile users on both prepaid and postpaid plans may have to pay more for recharges from next year, as telecom companies are expected to raise tariffs by up to 20%, according to Morgan Stanley.
In recent months, telecom firms have dropped cheaper plans or shifted benefits like OTT services to costlier packs. This has pushed users to move to higher-priced plans, helping companies earn more per customer.
The analysts at Morgan Stanley have said that they are assuming 16-20% tariff hike across 4G/5G plans in 2026, both on prepaid and postpaid. They added that it should drive “strong ARPU increases for companies in F27”.
Who will be the key beneficiary?
The analysts said that in the past when there was an increase in tariffs, it was Bharti AIrtel which was maong the key beneficiaries “showing disproportionate gains in revenue/EBITDA vs weaker players”.
Airtel, along with rivals Reliance Jio and Vodafone Idea (Vi), has increased prepaid prices three times in recent years. The companies had then said the hikes were needed to keep the telecom business healthy and to fund investments in 5G networks.
In 2019, tariffs were raised sharply by 15% to 50% across plans. The increase was smaller in 2021, at about 20% to 25%. Last year, prices went up again, mostly in the 10% to 20% range. Analysts had earlier expected another 15% hike in the 2026 financial year, but that has not happened so far.