Airtel, Jio, and Vodafone Idea users are going to get a shock of 440 volts. Telecom companies are going to increase the prices of their plans soon. Let us know how much effect it will have on your pocket.
Private telecom companies in India may increase the prepaid tariff from 10% to 12% by Diwali. This means that the tariff hike could come by October or November 2022. Analysts believe that the tariff increase will increase the Average Revenue Per User (ARPU) figure by 10%. If a report by ET Telecom is to be believed, Mayuresh Joshi, head of equity research at the Indian arm of US equity research firm William O’Neill & Co, said telcos will go for another prepaid tariff hike of 10%-12%. And potentially with this, you can increase the ARPU of Bharti Airtel, Jio, and Vi by up to Rs 200, Rs 185, and Rs 135 respectively.
Airtel and Jio will add more customers
Due to a strong 4G network across the country, analysts believe that Airtel and Jio are going to add most of the customers in FY2023. Vi is expected to do its best to add subscribers as the telco struggles to raise funds through outside investors. The tariff hike for prepaid plans will allow Bharti Airtel to reach its short-term target of ARPU of Rs 200.
Vi Airtel will follow
It is expected that Vodafone Idea will follow Airtel in its strategy of tariff hike. The higher the tariff hike by Airtel; V will also increase similarly. Even after another tariff hike this year, Vi’s ARPU may not cross the Rs 150 mark, which is an alarming point for the company’s investors.
The telco’s low-paying 2G customers are hurting its revenue. Vi needs to figure out a way to attract more customers and motivate network users to upgrade to its 4G services for better revenue.
