Desk: Inflation is going to hit the pockets of Indian mobile consumers once again. If you are also worried about the cost of your monthly or annual mobile recharge, then the coming days may increase your worries further. According to the report, the country’s leading telecom companies (like Reliance Jio, Bharti Airtel and Vodafone Idea) are soon preparing to make another huge increase in their mobile tariffs (recharge plans) by 12% to 15%. The public had not yet recovered from the shock of the last tariff hike that this step is being taken by the telecom companies to improve the Average Revenue Per User (ARPU) and to compensate for the huge investment made on 5G networks.
According to Centrum Institutional Research’s Telecom and Internet Sector Preview Report for Q1FY2027, tariffs in India’s telecom sector may increase by another 12-15 per cent in the next three to four months, as the environment for increasing prices has improved after market consolidation. The brokerage said in its report that now there are only 3+1 players, the environment for increasing prices has improved and we expect there to be a further increase of 12-15 percent in tariffs in the next 3 to 4 months.
Talking about the financial performance of the telecom sector, the report said that the ‘Average Revenue Per User’ (ARPU) of all three private telecom operators is expected to grow by 1-1.5 per cent quarter-on-quarter in the June quarter. The reason for this is the migration of subscribers from 2G to 4G and 5G networks, addition of postpaid customers and more number of days in the quarter. Centrum said that Bharti Airtel and Reliance Jio are expected to continue to grow in subscriber market share compared to Vodafone Idea.
The report said that Bharti Airtel and Reliance Jio will continue to gain subscriber market share compared to VIL. Reliance Jio is expected to add 7 million subscribers quarter-on-quarter, while Bharti Airtel is expected to add 5 million subscribers. We expect VIL to add 0.2 million customers quarter-on-quarter. The brokerage also expects data usage per customer to remain strong as 4G and 5G usage increases across the country.
The report says that due to the increasing use of 4G/5G networks, data usage per customer will remain strong. Reliance Jio and Airtel have started 5G service in more than 90 percent of the districts and their focus is on adding more 5G devices to their network. It also said that both companies are “also seeing good growth in G FWA and fixed broadband additions as penetration in this segment is still low.
The report states that Vodafone Idea is also expanding the scope of its 5G service, and it has been told that VIL’s 5G network is present in about 100 cities and it is increasing its 5G coverage. It was also told that the Adjusted Gross Revenue (AGR) dues of the company have decreased. It was said that as the present value of future AGR payment liabilities, the AGR dues liability for VIL has significantly reduced to Rs 25,000 crore.
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