Jio, Bharti Airtel and Vodafone Idea may hike tariffs again this year by 10%, The Financial Express reported citing analysts.
The tariff hikes may lead to an an increase in average revenue per user (ARPU) by atleast 25%, which can hep in expansion and growth for the sector in 2025. (Representational Image/Pixabay)
The previous hike was by 25% in July 2024, which came after two years.
The telecom operators may also introduce 5G-specific pricing along with the tariff hike as they focus on monetisation.
“Jio’s potential listing in 2025 will likely make it more amenable to higher tariffs to boost its growth. Bharti Airtel wants to raise tariffs for better ROCE (return on capital employed),” the report quoted Akshat Agarwal and Ayush Bansal, analysts at Jefferies, as saying in a note. "Moreover, with the government being the largest stakeholder, VIL may also favour tariff hikes.”
The hikes may increase average revenue per user (ARPU) by at least 25%, which can help the sector expand and grow in 2025.
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The hikes may increase average revenue per user (ARPU) by at least 25%, which can help the sector expand and grow in 2025.
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However, Jio's revenue gain is expected to be slow because the previous hike resulted in Jio losing 11 million subscribers due to the impact of SIM card consolidation.
For Airtel, rural market gains may slow down as most of the rollouts have already happened, and Vodafone Idea may gain more market share as it is now only going to roll out networks after the recent capital raise.
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