Vi Raises Tariffs on Select Family Postpaid Plans Ahead of Sector-Wide Hike

Vodafone Idea (Vi) has increased tariffs on some of its family postpaid plans by around 7–9%, marking the first major pricing move by a telecom operator ahead of an anticipated industry-wide tariff hike later this year. The changes were implemented in December and are aimed at protecting average revenue per user (ARPU) without triggering aggressive competitive responses.

Vi Increases Prices on Select Family Postpaid Plans

Vodafone Idea has raised tariffs on a few of its family postpaid plans by approximately 7–9%. According to reports, these price increases were rolled out in December and have made Vi’s plans more expensive on a per-GB basis compared to Bharti Airtel’s offerings.

This move comes at a time when telecom operators have deferred a broad-based tariff hike and instead opted to fine-tune pricing in specific customer segments.

ARPU Growth Without Triggering Competitive Reaction

Analysts noted that the targeted price hikes reflect a strategy to safeguard ARPU growth without provoking strong competitive retaliation.

“In the absence of a major tariff hike anytime soon, telecom operators will need to take such steps to ensure ARPU growth. This is especially critical for Vodafone Idea, which has been losing subscribers for several months,” a telecom analyst said.

Vodafone Idea’s urgency to improve revenue has increased as the company continues to face subscriber losses, making selective pricing adjustments more important for its financial stability.

Focus on Premium Family Postpaid Segment

The tariff increase is concentrated on high-end family postpaid plans, indicating a deliberate focus on premium customers who are more willing to pay higher prices.

While these changes do not amount to a full tariff revision, analysts view them as an effort to prevent further narrowing of the price gap between prepaid and postpaid plans.

Shrinking Gap Between Prepaid and Postpaid Plans

According to analyst estimates, the pricing gap between entry-level prepaid packs and postpaid plans has narrowed sharply over the past five years, shrinking from around 60% to nearly 20–30%.

“Telecom companies will have to correct this imbalance at some point,” an analyst said, adding that in the absence of industry-wide price hikes, increasing the premium on postpaid users remains one of the few available options.

Both Vodafone Idea and Bharti Airtel have publicly stated that tariff correction is necessary for the long-term health of the telecom sector.

BSNL Takes a Different Approach

State-owned BSNL has adopted a contrasting strategy. Instead of raising prices, the operator has increased data allowances on several prepaid plans, leading to an estimated 15–20% reduction in per-GB data costs.

Analysts noted that this has helped BSNL gain traction among price-sensitive users, particularly those opting for long-validity plans. However, the strategy also highlights BSNL’s delayed 4G rollout, which limits its ability to compete on network quality with private operators.

Measured Market Adjustments Instead of Big Reset

Overall, these developments indicate that telecom operators are managing prices through incremental, well-calibrated adjustments rather than sweeping tariff resets.

Analysts expect such targeted changes to continue, especially as market leader Reliance Jio has signalled that it does not see an immediate need for tariff hikes.

Industry-wide consensus on a major tariff increase has now shifted to the second half of the calendar year.

Implications for Vodafone Idea

For Vodafone Idea, this delay could have significant consequences. Despite recent relief on Adjusted Gross Revenue (AGR) dues, analysts estimate that the company will need to raise its ARPU to around ₹340 by FY28 to comfortably meet future spectrum payment obligations.

Meanwhile, Jio and Airtel continue to rely on bundled OTT benefits and premium plan upgrades to drive revenue growth without altering core tariffs.