We can expect a hike in tariff plans soon. Telecom Operators are aiming to increase the price of their tariff plans by 10%, says analysts at Jefferies.
Here’s What We Know
Reports says that the Telecom operators in India might soon increase the price of their tariff plans by 10% and intends to have a continuous hike in fiscal year 2023, 2024 and 2025.
The benefits of the previous tariff hikes are now realized by companies and it is at this juncture, telecom operators has decided to increase the price of their tariff plans.
With the previous tariff hikes, Jio managed to increase its average revenue per user(ARPU) by 0.8%, Vodafone Idea had a 1% increase and Airtel made an unbelievable 4% increase in its ARPU.
As the first step to increase the tariff plans, Airtel has also taken away the Rs. 99 base plan and has made the Rs. 155 tariff plan as the base plan now. Airtel by this has also invited other telecom operators to join them.
Analysts at Jefferies has identified this chance for a 10% price hike and it is something unavoidable.
With the launching of 5G network throughout the country, operators will slowly increase the prices to meet their additional expenses in the infrastructural development.
The short term goal of Airtel, according to the company, is to reach a level of Rs. 200 as the average revenue received per user and with the price hike, Airtel will be able to achieve it. But the telecom operator plans to make the ARPU Rs. 300 in the future.
After the tariff hikes, the Rs. 719 plan will most probably cost around Rs. 799 or Rs. 789. Other tariff plans will also have similar price hikes as well.
