Users may soon notice new costs for their mobile prepaid and postpaid plans as telecom companies are anticipated to raise the charges with the new year. According to reports, telecom behemoths like Jio and Airtel would modify and raise the rates of their current plans by 10% in order to boost revenue and profits for their businesses.
A brief about Jio and Airtel to make your phone bills more expensive due to implementing of hike tariffs:
In the next three years, or in the fourth quarters of FY23, FY24, and FY25, telecom carriers including Jio and Airtel are likely to announce a 10% increase in prices, according to research by analysts at Jefferies (via Business Insider). This implies that subscribers will experience an increase in cell plan costs every fourth quarter going forward.
The report goes on to say that the likely reason for the price hike is the mounting pressure on corporations’ revenue and profits. An essential measure of a telecom company’s performance, the average revenue per user (ARPU), climbed slightly for Airtel, Vodafone Idea, and Jio in the third quarter. Additionally, the ARPU will significantly increase with additional price increases.
Remarkably, Airtel has already begun to raise the cost of some of its current plans. Additionally, the telecom operator has started to discontinue some of its less expensive plans, most recently the Rs 99 plan. The company’s rural expansion saw the launch of the plan in a few specific locations. The prepaid subscription previously included access to Zee5 Premium for 18 days, 100 SMS, and 1GB of data via Airtel Xstream. Users in a few states, including Chhattisgarh, Bihar, Jharkhand, Odisha, West Bengal, Rajasthan, and UP East, had access to it. However, because of decreased profit margins, Airtel abandoned this proposal. Instead, Airtel re-released the plan at a higher cost. The current price for the Rs 99 plan is Rs 155.
In the meanwhile, revenue is also determined by subscribers. And over the past few months, the subscriber bases of both Airtel and Jio have significantly grown. The continued rivalry between the two telecom firms to entice new customers was further spurred by this. On the other hand, Vodafone Idea (Vi) saw a decline in subscribers and is now making every effort to draw customers by providing plans that are more affordable than those of its rivals.
Even the current rollout of 5G has had a significant influence on Vodafone Idea’s subscriber count. While Vi is having financial difficulties launching the fifth-generation network connectivity, Jio and Airtel have already begun rolling out their 5G network connectivity. On the other side, Jio and Airtel are quickly encircling most Indian cities and plan to roll out 5G PAN in India within 1-2 years.