Airtel, Jio announce mobile tariff hike: New plans
Airtel, Jio announce mobile tariff hike: New plans
Mobile phone bills are set to increase as Reliance Jio and Bharti Airtel have announced significant tariff hikes. Jio revealed a 12-25% increase on Thursday, followed by Airtel's announcement of price hikes on Friday. This marks the first major rate increase by a telco since 2021, aimed at boosting average revenue per user (ARPU) due to the high investments in 5G services.
Jio's Tariff Hike Details
Starting July 3, Jio's new rates will be implemented, affecting its over 472 million users. The Rs 155 plan will now cost Rs 189, while the popular Rs 239 monthly plan, offering 1.5 GB data per day, will be revised to Rs 299, a 25% increase. The annual package will see the highest hike, from Rs 2,999 to Rs 3,599. The smallest increase is Rs 34 for the Rs 155 plan with 28 days validity.
Note that once the price hike goes into effect, the unlimited 5G data will only be available with plans offering 2GB/day data or above.
| Existing Plan Price (Rs) | Benefits (Unlimited voice & SMS plans) | Validity (days) | New Plan Price (Rs) |
| Monthly | |||
| 155 | 2 GB | 28 | 189 |
| 209 | 1 GB/day | 28 | 249 |
| 239 | 1.5 GB/day | 28 | 299 |
| 299 | 2 GB/day | 28 | 349 |
| 349 | 2.5 GB/day | 28 | 399 |
| 399 | 3 GB/day | 28 | 449 |
| 2-month plans | |||
| 479 | 1.5 GB/day | 56 | 579 |
| 533 | 2 GB/day | 56 | 629 |
| 3-month plans | |||
| 395 | 6 GB | 84 | 479 |
| 666 | 1.5 GB/day | 84 | 799 |
| 719 | 2 GB/day | 84 | 859 |
| 999 | 3 GB/day | 84 | 1199 |
| Annual | |||
| 1559 | 24 GB | 336 | 1899 |
| 2999 | 2.5 GB/day | 365 | 3599 |
| Data add-on | |||
| 15 | 1 GB | base plan | 19 |
| 25 | 2 GB | base plan | 29 |
| 61 | 6 GB | base plan | 69 |
| Postpaid | |||
| 299 | 30 GB | bill cycle | 349 |
| 399 | 75 GB | bill cycle | 449 |
Airtel's Revised Tariffs
Airtel's new tariffs also apply to both prepaid and postpaid plans, following Jio’s increase. The Rs 179 monthly plan will now be Rs 199, offering 2GB data per day, unlimited calling, and 100 SMS per day. The Rs 1,799 annual plan will now cost Rs 1,999. Daily data add-on plans start at Rs 22, up from Rs 19. Postpaid plans range from Rs 449 to Rs 1,199, with daily data plans starting at Rs 265.
Airtel Prepaid Plans
| Type | MRP | Validity (Days) | Benefit | Revised MRP |
| Unlimited | 179 | 28 | 2GB data, UL Calling, 100 SMS/day | 199 |
| Unlimited | 455 | 84 | 6GB data, UL Calling, 100 SMS/day | 509 |
| Voice Plans | 1799 | 365 | 24GB data, UL Calling, 100 SMS/day | 1999 |
| Voice Plans | 265 | 28 | 1GB/day, UL Calling, 100 SMS/day | 299 |
| Voice Plans | 299 | 28 | 1.5GB/day, UL Calling, 100 SMS/day | 349 |
| Voice Plans | 359 | 28 | 2.5GB/day, UL Calling, 100 SMS/day | 409 |
| Voice Plans | 399 | 28 | 3GB/day, UL Calling, 100 SMS/day | 449 |
| Daily Data Plans | 479 | 56 | 1.5GB/day, UL Calling, 100 SMS/day | 579 |
| Daily Data Plans | 549 | 56 | 2GB/day, UL Calling, 100 SMS/day | 649 |
| Daily Data Plans | 719 | 84 | 1.5GB/day, UL Calling, 100 SMS/day | 859 |
| Daily Data Plans | 839 | 84 | 2GB/day, UL Calling, 100 SMS/day | 979 |
| Daily Data Plans | 2999 | 365 | 2GB/day, UL Calling, 100 SMS/day | 3599 |
| Data Add-Ons | 19 | 1 day | 1 GB | 22 |
| Data Add-Ons | 29 | 1 day | 2 GB | 33 |
| Data Add-Ons | 65 | Plan validity | 4 GB | 77 |
Airtel Postpaid Plans
| MRP | Benefit | Revised MRP |
| 399 | 1 Connection; 40GB Data with roll-over, Unlimited Calling, 100 SMS/day, Xstream Premium Subscription | 449 |
| 499 | 1 Connection; 75GB Data with roll-over, Unlimited Calling, 100 SMS/day, Xstream Premium Subscription, Disney+Hotstar Subscription 12 months, Amazon Prime Subscription 6 months | 549 |
| 599 | Family of 2 Connections; 105GB Data with roll-over, Unlimited Calling, 100 SMS/day, Xstream Premium Subscription, Disney+Hotstar Subscription 12 months, Amazon Prime Subscription 6 months, Wynk Premium | 699 |
| 999 | Family of 4 Connections; 190GB Data with roll-over, Unlimited Calling, 100 SMS/day, Xstream Premium Subscription, Disney+Hotstar Subscription 12 months, Amazon Prime Subscription 6 months, Wynk Premium | 1199 |
Indian Telecom Industry Context
Experts anticipated the tariff hikes following the spectrum auction, as telcos aim to monetize their investments. Jio's ARPU showed minimal growth, from Rs 178.80 in fiscal 2023 to Rs 181.70 in fiscal 2024. Jio and Airtel have invested over Rs 2 lakh crore in 5G rollouts without immediate returns. This is the first significant tariff increase since November 2021, when rates were raised by 20-25%.
What Experts are saying about Airtel, Jio Tariff Hikes
Brokerage CLSA suggests that Jio, Airtel, and Vodafone Idea need at least a 20% rate hike to reach a sectoral ARPU of Rs 200-217 by FY25-26. In May, Airtel's managing director Gopal Vittal emphasized the need for substantial tariff increases, citing the low return on capital employed (RoCE) at 9.5%. He noted, "While tariff hikes would invariably lead to some SIM consolidation, the upside benefits are far greater."
A BofA Securities report indicates that 36% of Jio and Airtel users are prepared to accept a 20-25% tariff hike post-elections. The telecom sector continues to adjust pricing strategies to enhance revenue in a competitive market.
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