The Capital News
In a move that is set to immensely impact mobile phone consumers across India, the country’s top two telecom operators, Bharti Airtel and Reliance Jio, have announced substantial increases in mobile tariffs. Bharti Airtel has disclosed a tariff hike ranging between 10 percent to 21 percent, which will take effect from July 3. This follows a similar announcement by Reliance Jio, signaling a major shift in the pricing landscape of the Indian telecom sector. Reliance Jio, which led the change with an announcement on June 27, has increased its tariffs by 12.5 percent to 25 percent. Bharti Airtel followed suit with a hike ranging from 10 percent to 20 percent. Both companies’ revised plans will become effective starting July 3. In a press release, Bharti Airtel led by Sunil Mittal, emphasized the need for average revenue per user (ARPU) to exceed Rs 300 to sustain a healthy business model, enabling essential investments in network technology and spectrum. Bharti Airtel has specifically adjusted rates across its unlimited voice and daily data plans. For example, prices for unlimited voice plans have seen increases of approximately 11 percent, with rates now adjusted from Rs 179 to Rs 199, Rs 455 to Rs 509, and Rs 1,799 to Rs 1,999. In the daily data plan category, the Rs 479 plan has been raised to Rs 579, reflecting a 20.8 percent hike. This tariff revision marks the first significant increase in the telecom industry in about 30 months, following a subdued response to the recent spectrum auction. Reliance Jio initiated the tariff hike trend with a 12 to 25 percent increase across its mobile plans, highlighting efforts to boost its ARPU, which had stagnated at Rs 181.7 in recent quarters. The simultaneous implementation of the revised plans by Bharti Airtel and Reliance Jio on July 3 is expected to influence the trajectory of 5G adoption in India, where both companies have been offering 5G services at 4G prices. As of the end of the fourth quarter of 2024-25, Jio reported 108 million 5G subscribers, while Airtel recorded 72 million. Consumers should brace for higher mobile phone bills as these tariff hikes take effect, marking a significant shift in the Indian telecom sector’s pricing dynamics.
