Telcos Bharti Airtel, Reliance Jio to hike tariffs by 10%, says Jefferies: Report

Users may have to pay more for mobile phone top-up plans in the coming years. According to reports, investment bank Jefferies said that telecom companies in India will increase tariffs by 10% by March next year. Bharti Airtel and Reliance Jio are said to be raising tariffs in the last quarter of fiscal 2023, 2024 and 2025. Increased pressure on corporate revenues and margins could be a key reason for the higher tariffs. India’s three largest telcos reported modest growth in average revenue per user (ARPU), a key performance indicator for telcos, in the September quarter.

A sort of Report Business Insider quotes Jefferies as saying, Bharti Telecom with Reliance Jio A 10% tariff increase may be announced in the final quarter of fiscal 2023, 2024 and 2025. According to analysts, increasing pressure on the company’s revenue and margins, as well as moderate growth in average revenue per user (ARPU)) are the main factors behind the price hike.

Jio’s ARPU was reported to have risen 0.8% in the quarter ended September, while Vodafone Idea and Airtel rose 1% and 4%, respectively.

Analysts further point to rising churn rates (the number of customers who stop paying for a service in a given period) and Mobile Number Portability (MNP) requests as signs of competition in the telecom space.

Airtel seems to have started implementing price hikes by withdrawing the rupee. 99 plan, which offers 200MB of data and calling at a rate of Rs. 2.5 Pa per second.Last month, the company reintroduce Rs. 99 mobile phone service plan, the price has increased by about 57% to Rs. 155. The new plan offers 24 days of unlimited talk, 1GB of data, Wynk music access and 300 text messages. This pack is available in several circles.

according to recent train date, Jio added 720,000 wireless subscribers in September, while Bharti Airtel added 412,000 mobile subscribers. Vodafone Idea’s subscriber base fell by 4 million to 24.91 million. Airtel and Jio are currently leading the way in terms of 5G deployment in the country.

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