Jan 14, 2025 03:42 PM IST
The earlier tariff hike by Jio, Airtel, and Vodafone Thought was by 25% in July 2024, which got here after two years
Jio, Bharti Airtel and Vodafone Thought could hike tariffs once more this yr by 10%, The Monetary Categorical reported citing analysts.
The tariff hikes could result in an a rise in common income per person (ARPU) by atleast 25%, which might hep in growth and progress for the sector in 2025.(Representational Picture/Pixabay)
The earlier hike was by 25% in July 2024, which got here after two years.
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The telecom operators may introduce 5G-specific pricing together with the tariff hike as they deal with 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 notice. “Moreover, with the government being the largest stakeholder, VIL may also favour tariff hikes.”
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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.
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.
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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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