After Jio, Airtel Hikes Tariff By Upto 20%: 70 Paisa Increased For Entry Level Plans


Mohul Ghosh

Mohul Ghosh

Jun 28, 2024


Bharti Airtel, India’s second-largest telecom operator, has announced an increase in mobile tariffs, following a similar move by Reliance Jio. The new tariffs will take effect from July 3, 2024, with increases ranging from 10-21 percent across various plans.

After Jio, Airtel Hikes Tariff By Upto 20%: 70 Paisa Increased For Entry Level Plans

Details of the New Tariffs

Airtel’s price hike will impact several plans, including entry-level and unlimited voice plans. The tariff for entry-level plans will increase by less than 70 paise per day, ensuring minimal burden on budget-conscious consumers. Unlimited voice plans will see prices rise from Rs 179 to Rs 199, Rs 455 to Rs 599, and Rs 1,799 to Rs 1,999.

Rationale Behind the Hike

Airtel has consistently argued that the mobile Average Revenue per User (ARPU) needs to exceed Rs 300 for a financially sustainable business model in India. This latest tariff hike aims to move closer to that target, improving the overall financial health of the telecom industry.

Industry Context and Comparisons

The tariff hike by Bharti Airtel comes a day after Reliance Jio announced a 12-25 percent increase in tariffs across all mobile plans. Jio’s move is expected to boost its ARPU, which had stagnated at Rs 181.7 for three consecutive quarters until March 2024. Historically, India’s telecom ARPU has been among the lowest globally, necessitating such price adjustments for sustainability.

Spectrum Auction and Industry Dynamics

In the recent telecom spectrum auction, which concluded on June 27, Bharti Airtel emerged as the top bidder, securing 97 MHz of spectrum for Rs 6,856 crore. In contrast, Reliance Jio acquired 14.4 MHz for Rs 973 crore, and Vodafone Idea (Vi) secured 50 MHz for Rs 3,510 crore. These acquisitions are crucial for expanding network capacity and improving service quality.

Future Implications

The tariff hikes by Airtel and Jio are expected to set a precedent for other telecom operators, potentially leading to a more financially stable telecom sector in India. As the industry evolves, consumers may need to adjust to higher costs for mobile services, but these changes are deemed necessary for maintaining and enhancing service quality.


Mohul Ghosh
Mohul Ghosh
  • 1070 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Telecom
Nov. 23, 2022

Jio 5G Launched In Pune With 1Gbps+ Data Speed: Offers Unlimited 5G Data!

Reliance Jio on Thursday announced the launch of its 5G network in Pune. Dawn of a new era In October, Prime Minister Narendra Modi launched 5G in India with the promise of ultra high-speed internet on smartphones.  5G means speeds multiple times faster than 4G and lag-free connectivity which enable billions of connected devices to […]

Telecom
Nov. 22, 2022

Airtel Increases Minimum Monthly Plan Tariff By 57%; Pay Rs 155 For Airtel’s Minimum 28-Days Plan

As expected, Airtel has triggered a new wave of price hikes in the telecom industry, and it’s expected that soon, others will follow suit. With this new round of price hikes, telecom companies like Airtel can expect much better ARPU or Average Revenue Per User, but it will burn a hole in the consumer’s pocket. […]

Telecom
Nov. 17, 2022

BSNL 4G Can Launch As Early As January, 2023 With 10,000 Towers Across India! TCS-BSNL Partnership Will Work?

State-run BSNL is expected to launch its 4G services from January. TCS at the helm It is doing so with the help of Tata Consultancy Services (TCS) which has bagged the tender for the construction of towers to enable the rollout of the service. The tender for the setting up of 4G towers was released […]

Telecom
Nov. 12, 2022

BSNL 4G Tests Successfully Completed; BSNL 4G Expected To Start From January, 2023!

BSNL has completed the trials for its indigenous 4G network as part of the proof of concept with a Tata Consultancy Services-led consortium. It was completed in the last week of October in Chandigarh. Location not yet decided A government official said that all the necessary network tests as part of proof-of-concept with a TCS-led […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online