Jio and Airtel might increase the price of their mobile plans. The telecom operators are expected to raise tariffs by 10 percent for the next three years.
Keep it Short
- Jio and Airtel might increase tariffs for their existing plans.
- The cheapest plan of Airtel is 99 Rupees.
- Vodafone Idea is expected to raise the plans due to the subscriber base.
By Crox Media: With the new year just around the corner, many telecom companies are planning to increase tariffs for both prepaid and postpaid users. Several reports suggest that to increase the revenue and margin of companies, telecom giants like Jio and Airtel will change and increase the prices of their plans by 10 percent.
As per the report by analysts at Jefferies (Via Business Insider), telecom operators including Jio and Airtel are expected to announce a 10 percent hike in the tariffs consequently for the next three years i.e., FY 23, FY 24, and FY 25. This means that users will witness a hike in the prices of their mobile plans every fourth quarter of the upcoming years.
The report suggests that the increasing pressure on the company’s revenue and margins is the cause of the hike in price. The Average Revenue Per User (ARPU) is a crucial indicator of the Telcom Company’s performance and increased moderately for big names such as Airtel, Vodafone, and Jio. And with further price hikes, ARPU will increase significantly.
Notably, Airtel has already stated to hike tariffs on some of its existing plans. In addition, the telecom operator has also started removing some cheaper plans, including the recent withdrawal of the Rs 99 plan. The plan was launched in limited areas in the company’s rural expansion. The Prepaid plan used to offer 1GB of data, 100 messages, airtel xtream, and Zee5 Premium for around 18 days. However, the company stopped the plan due to lower profit margins. In place of it, Airtel reintroduced the plan with a hike in price. Rs 99 plan is now available at Rs 155.
If we talk about 5G expansion, Jio and Airtel have already started rolling out their 5G network connectivity. But on the other hand, Vodafone is still struggling to find a way for the same.