Bad news for mobile users! Recharges will soon become 15% expensive, the burden on your pocket will increase

If you are also troubled by the rising cost of mobile recharge, then this news may put you in even more tension. Another inflation is going to hit the common man’s pocket soon. According to media reports, the country’s major telecom companies—Reliance Jio, Bharti Airtel and Vodafone Idea—are soon planning to drastically increase the prices of their recharge plans by 12% to 15%. The public had not yet recovered from the last tariff hike when once again the sound of mobile bill increase has worried everyone.

Why are recharge prices increasing?

A big revelation has been made in the latest report of ‘Centrum Institutional Research’, which keeps an eye on the telecom sector. According to the report, the main goal of the companies is to increase the ‘Average Revenue Per User’ (ARPU). In fact, companies now need more revenue to compensate for the huge investments made in 5G network expansion and infrastructure. Due to limited number of companies (3+1 players) in the market now, it has become easier for the companies to increase the prices. It is believed that this increase may be implemented within the next 3 to 4 months.

Which company is leading in the race?

According to the report, the average revenue per subscriber (ARPU) of private telecom companies is expected to increase by 1 to 1.5 percent in the June quarter. The main reason behind this is the rapid shift of customers from 2G to 4G and 5G. Talking about subscriber market share, Reliance Jio and Bharti Airtel are overshadowing Vodafone Idea (VIL). While Jio is expected to add 7 million new customers every quarter and Airtel is expected to add 5 million new customers, Vodafone Idea’s pace remains very slow.

Increasing scope and data consumption of 5G

The use of 4G and 5G is increasing rapidly across the country. Reliance Jio and Airtel have extended their 5G service to more than 90 percent of the districts. Now the focus of these companies is on increasing the number of 5G devices and strengthening their hold in the fixed broadband segment. On the other hand, Vodafone Idea is also increasing its 5G coverage and the company is also seeing a reduction in its AGR dues, which may give some relief to the company for the future. At present, the eyes of customers are fixed on the next official announcement of the companies.