Telecom giants Reliance Jio and Bharti Airtel are gearing up for tariff revisions post-elections, spurred by factors like increased 5G usage and the quest for higher average revenue per user (ARPU).
5G Boosts Data Consumption
Rising data consumption in 5G packs is propelling users towards higher-tier plans for an enriched experience, a trend exploited by Jio’s strategy. Additionally, Jio is leveraging its JioFiber broadband plans to drive user adoption.
“With users moving to higher 5G packs, higher realisation from Fiber plans, and some churn from other operators, we expect Arpu to rise without going for a headline tariff hike,” Unnamed telecom executives shared with Financial Express.
Airtel’s ARPU Ambitions
Airtel, with an ARPU of ₹208, leads the industry, aiming to surpass the ₹200 mark. To achieve this, Airtel is adjusting tariffs across plans, with a potential headline tariff hike post-elections.
Market Dynamics and Projections
Jio’s rapid growth in home broadband sector, coupled with Bharti’s proactive tariff adjustments, signifies fierce competition. Analysts anticipate Bharti spearheading tariff hikes, stabilizing ARPU at ₹260+ by FY26.
