Vodafone Idea has raised tariffs on some of its family postpaid plans by about 7–9%, marking one of the first visible price actions by a telecom operator ahead of an anticipated sector-wide hike later this year.
The increases, implemented in December, make these plans more expensive than comparable offerings from Bharti Airtel on a per-GB basis, according to a Morgan Stanley report.
The move comes at a time when operators have largely deferred headline tariff increases, choosing instead to fine-tune pricing within specific segments. Analysts said the changes reflect an attempt to protect average revenue per user (Arpu) growth without triggering a broader competitive response.
For Vodafone Idea, which has been steadily losing subscribers, the need to shore up revenues has become more acute.
“In the absence of headline hikes any time soon, telcos will need to take such steps to ensure Arpu growth. Especially for Vodafone Idea, since the telco has also been bleeding customers over the past several months,” a telecom analyst said.
Targeting Premium Segments
The increase has been focused on higher-end family plans, indicating a calibrated strategy aimed at users with a higher willingness to pay. While the changes stop short of a full tariff revision, analysts view them as an attempt to arrest the steady compression between prepaid and postpaid pricing.
Over the past five years, the gap between entry-level prepaid packs and postpaid plans has narrowed sharply, from around 60% to 20–30%, according to analyst estimates.
“Telcos will at some point need to address this imbalance,” another analyst said, adding that premiumisation of postpaid users remains one of the few levers available in the absence of industry-wide price hikes.
Vodafone Idea and Bharti Airtel have both publicly said that tariff repair is essential for the long-term health of the sector.
At the other end of the market, state-run BSNL has taken a contrasting approach. The operator has increased data allowances on several prepaid plans without raising prices, effectively reducing the cost per GB by an estimated 15–20%.
Analysts said this has improved BSNL’s attractiveness among price-sensitive users, particularly on longer-validity packs. The strategy also reflects its delayed 4G rollout compared with private peers, limiting its ability to compete on network quality.
Calibrated Market Adjustments
Taken together, the moves highlight how operators are resorting to micro-adjustments to manage pricing while postponing broader resets. Analysts said such calibrated changes are likely to continue, especially as market leader Reliance Jio has indicated it does not see an immediate need for a tariff hike.
Consensus expectations for a headline increase have now shifted to the second half of the calendar year. For Vodafone Idea, the delay has significant implications. Despite recent relief on adjusted gross revenue dues, analysts estimate the company’s Arpu will need to rise to around Rs 340 by FY28 to comfortably meet future spectrum payment obligations.
Meanwhile, Jio and Airtel have continued to lean on bundled OTT offerings and premium plans to drive upgrades without altering headline prices.