Airtel Joins Jio in Raising Mobile Tariffs
Bharti Airtel announced a significant increase in mobile tariffs by up to 20% effective July 3. This announcement came just a day after Reliance Jio, the market leader, implemented a similar hike. The new pricing details reveal that unlimited calling plans will now cost 11-20% more across both prepaid and postpaid segments.
New Tariff Plans and Their Impact
Airtel’s new pricing strategy reflects a hike in the ~179 plan, which offers 2 GB of data along with unlimited voice calling, now priced at ~199, an 11% increase. Similar increases apply to plans ranging from ~455 to ~1799.
In the postpaid segment, known for being a premium category, Airtel has raised the prices of its ~399, ~499, ~599, and ~999 plans by 12.5%, 10%, 16.6%, and 20% respectively. Annual and data add-on plans have also seen a rise.
Why the Tariff Hike?
Airtel cited the need to raise the Average Revenue Per User (ARPU) in the mobile segment to over Rs 300 as a primary reason for the tariff hike. According to the company, this increase will support a financially healthy business model for telecom operators in India, enabling substantial investments in network technology and spectrum while providing a modest return on capital.
Airtel’s ARPU Performance
At the end of Q4 FY24 (January-March), Airtel’s ARPU was Rs 209, marking an 8.2% year-on-year increase. This is the highest ARPU among India’s top telecom players, surpassing Jio’s Rs 181.7 and Vodafone Idea’s Rs 146. However, ARPU growth had stagnated in recent quarters, rising marginally from Rs 208 in Q3.
Industry Response and Future Outlook
Airtel welcomed the industry’s move to repair tariffs, noting that the price increase is modest (less than 70 paise per day) for entry-level plans to minimize the impact on budget-conscious consumers.
Market Share and Subscriber Base
As of April-end, Airtel held a 33.1% market share of wireless subscribers in India, with 386.51 million of the 1.16 billion total mobile phone connections. Jio, in comparison, had 472.42 million subscribers.
Impact on 5G Adoption
The tariff hike is expected to impact the adoption rate of 5G services in the country. Both Jio and Airtel have introduced 5G services at 4G prices. At the end of Q4 FY25 (January–March), Jio had 108 million 5G subscribers, while Airtel had 72 million 5G subscribers.
Disclaimer:
The information provided in this article is based on the latest announcements and data available from Bharti Airtel and Reliance Jio as of the date of publication. The content is intended for informational purposes only and should not be considered as financial or investment advice. The author and publisher are not responsible for any actions taken based on the information provided in this article. Always consult with a qualified professional before making any financial decisions.
