Mobile Tariff Hike Hits Customers Again: Prices Increase for the Second Time in 6 Months

In a significant development for mobile users in India, leading telecom operators have announced a second round of tariff hikes within six months, effective from July 2024. This move is anticipated to increase mobile phone bills by approximately 15% to 25%, depending on the specific plan and usage patterns.

Bharti Airtel’s Tariff Revision

Bharti Airtel, India’s second-largest telecom operator, has revised its mobile tariffs by 10% to 21%. The company stated that the increase translates to less than 70 paise per day on entry-level plans. Airtel emphasized that this adjustment is necessary to elevate the Average Revenue Per User (ARPU) to over ₹300, a benchmark deemed essential for the financial health of the telecom sector.

Reliance Jio’s Tariff Increase

Reliance Jio, the market leader, has also announced a tariff hike ranging from 12% to 27%, with an average increase of 20%. The new plans, effective from July 3, 2024, start at ₹189 for 2 GB per month and go up to ₹3,599 for an annual plan offering 2.5 GB per day. These plans include unlimited 5G data for all packages with 2GB/day and above.

Vodafone Idea’s Tariff Adjustment

Vodafone Idea (Vi) has followed suit by increasing its tariffs by 11% to 24%, effective from July 4, 2024. The entry-level plan with 28 days of validity has been raised to ₹199 from the previous ₹179. Additionally, the popular 84-day validity plan with 1.5 GB data per day now costs ₹859, up from ₹719. Vi has indicated that these adjustments are part of its strategy to invest significantly in enhancing 4G services and launching 5G in the near future.

Industry-Wide Implications

This coordinated tariff revision by major telecom operators is expected to impact approximately 1.09 billion mobile users across the country. The cumulative annual financial burden due to these hikes is estimated to be around ₹34,824 crore. The telecom companies assert that the increased revenue is crucial for expanding 5G infrastructure and improving network capacity to meet the growing demand for data services.

Consumer Advisory

With the impending tariff hikes, consumers are advised to review their current mobile plans and assess their data and calling needs. Exploring alternative plans or providers, considering bundled services, or negotiating with current providers may help mitigate the impact of increased costs. Staying informed about the latest offerings and making timely adjustments can ensure that users continue to receive optimal value for their expenditures.

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