Telecom operators may hike tariffs by 10 percent according to an online report by Business Insider India. This means users might need to pay an increased bill. Both Reliance Jio and Bharti Airtel may announce a 10 percent tariff hike according to the report in Q4 of FY2023 and FY25.
The report said, “Most of the benefits of the last tariff hike have already flown to the telcos and their revenue and margins are increasingly under pressure. This necessitates a tariff hike by telcos.”
The reasons behind the same have also been revealed in the report. Increasing pressure on revenue, moderate gains and margins in the ARPU rate can be one of the reasons for this stipulated tariff hike. ARPU rate of Reliance Jio increased by 0.8 per cent and it increased by 1 per cent for Airtel and Vodafone in the ARPU rate as per data of the report.
It was also mentioned that this year Airtel started testing price hikes by discontinuing the Rs 99 prepaid plan in some telecom circles. This plan offered calls at 2.5 paise and 200MB data. This was then reintroduced with a hike of 57 percent. It was then converted to a Rs 155 plan that offered unlimited calls and 1GB data.
Union Minister Devusinh Chauhan recently said that an average of 2,500 base stations per week are being installed by telecom operators for providing 5G services across the country to all subscribed users. Rajya Sabha was also told by the Minister of State for Communications that as of November 26, 20,980 mobile base stations were installed. And among the many telecom operators in the country, Reliance Jio and Airtel have installed 17,687 and 3,293 base stations alone respectively. Vodafone Idea might also raise tariffs like its counterparts.
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