Telecom Operators Adjust Tariffs Ahead of Potential Major Hikes
Telcos test waters with smaller tariff hikes before big one
The Economic TimesImage: The Economic Times
Telecom companies in India, including Bharti Airtel and Vodafone Idea, are making minor adjustments to their tariff plans, such as increasing prices and modifying validity periods. These changes come as the operators seek to improve their average revenue per user (ARPU) amid ongoing discussions for larger tariff hikes.
- 01Bharti Airtel increased its ₹859 prepaid plan to ₹899 while discontinuing the ₹799 plan.
- 02Vodafone Idea raised the entry price for unlimited 5G data to ₹349 in some areas.
- 03Reliance Jio reduced the validity of its ₹195 plan from 90 days to 30 days.
- 04These adjustments are seen as preliminary steps before anticipated larger tariff hikes.
- 05Telecom operators are under pressure to improve their return on capital employed.
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In recent weeks, Indian telecom operators have made minor adjustments to their tariff plans as they prepare for potential larger hikes. Bharti Airtel discontinued its ₹799 prepaid pack and raised the price of its ₹859 plan to ₹899, while maintaining the same data benefits of 1.5 GB per day. The updated plan now offers 84 days of validity compared to the previous 77 days. Vodafone Idea has also restructured its plans, notably increasing the entry price for unlimited 5G data to ₹349 in certain regions, while some areas still offer it at ₹299. Additionally, the company altered its NonStopHero packs to provide unlimited data access only during nighttime hours. Meanwhile, Reliance Jio made a notable change by reducing the validity of its entry-level ₹195 plan from 90 days to 30 days, but it has begun bundling subscriptions to over-the-top (OTT) services to offset this reduction. Analysts suggest that these incremental changes will not significantly boost the average revenue per user (ARPU), a critical metric for telecom operators, as they continue to advocate for higher industry tariffs to enhance their return on capital employed, which they argue is among the lowest globally.
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These tariff adjustments may lead to increased costs for consumers, particularly affecting those who rely on prepaid plans for their mobile services.
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