Will Airtel, Jio Raise Data, Voice Tariff This Year? Here’s The Shocking Truth!

When it comes to active mobile subscriptions, Bharti Airtel and Reliance Jio are almost equal. And therefore, there is not much possibility that the prices of the two telecom providers will take a hike in 2021-22.

Airtel And Jio’s Active Subscriber Base Almost Equal; No Increase In Tarrif

There is a fiercely close competition between Airtel and Jio, as per the research wing of Domestic credit rating agency Crisil, the active subscriber base of Jio’s share is 33.7 per cent and Airtel’s at 33.6 per cent. 

Any unanimous tariff hike seems improbable in 2021-22 as neither one is ready to bow out and be the expensive provider.

Crisil’s research states, “The active subscriber market share data indicates the top two players are neck and neck, with neither ready to bite the bullet and raise tariffs.”

This will also result in a huge increase in the average revenue per user (ARPU) in the fiscal year 2022.

Tariff Hikes On Selected Plans

As per the report, there are about 250 to 300 million active non-4G subscribers, and this will bring them on the radar of Jio and Airtel so as to bring about an increase in revenues. Additionally, with the recent acquisition of spectrum, telecom service providers are now in a good position to deal with the increase in data traffic.

Previously, due to inadequate spectrum and 4G coverage, quality services couldnt be promised to the public.

The competition now will be indirect such as tie-ups with smartphone manufacturers for low-cost smartphones and the additional availability of OTT content and lower entry points for upgrade customers. The report states that the recently launched JioPhone 2021 plans which offered handsets along with one and two year unlimited calling validity are an example.

As per the reports, individual players will increase the tariff rates on selected plans to improve the average revenue per user (ARPU). 

Additionally, with the current situation of lockdown and reverse migration of labour, there also is the possibility of another quarter of subscriber churn. This will also affect smartphone sales and lessen the 4G subscriber additions in this quarter.