Telecom Companies are Reportedly Planning on Increasing Prices Again

According to reports, Indian telecom companies Reliance Jio, Airtel, and Vodafone Idea intend to raise their prices once more. The telcos had previously raised their prices by up to 25% in November 2021. According to an Economic Times report, telcos plan to raise prices by 10 to 12 percent, rising average revenue per user (ARPU) by 10 percent. According to the report, analyst Mayuresh Joshi, head of equity research at William O' Neil & Co, the telcos will raise their prices by Diwali this year.

However, despite the hike in prices, the telcos are expected to add around 40 million new users by the end of FY 2023. The telecom companies encountered minimal issues despite the rise in prices by nearly 25% in November 2021 and this has paved the way for another tariff hike.

The analysts believe that the new subscriptions will be driven by the rural markets where the tele-density is around 60% at the moment. Among these companies, Mukesh Ambani-led Jio and Sunil Mittal-led Airtel are estimated to attract the bulk of new subscribers, while Vodafone Idea will experience decent gains.

The increased prices will boost Airtel’s ARPU to around INR 200. Jio and Vodafone’s Idea’s ARPU is expected to rise to INR 185 and INR 135 respectively.