Mobile Recharges Likely To Increase By 10-12% By Year-End

Telecom Operators Set to Increase Tariff Again

Telecom operators who hiked mobile recharge prices last year are gearing up for another hike. The industry experts predict a 10-12% increment in mobile tariffs by the end of the current year. The hike could be attributed to growing user bases and wider 5G services.

Record Growth in Active Mobile Users

In May, the nation witnessed a historic increase in active mobile users. 7.4 million new subscribers were added in one month alone. This was the highest addition in 29 months. The number of active users has now climbed to 1.08 billion. Reliance Jio increased 5.5 million users, and Airtel increased 1.3 million users in May alone.

Emphasis on Tariff Hikes During User Addition

Telecom operators are considering tariff hikes amid growth in users, according to financial institution Jefferies. Base plan prices in July rose by 11-23%. Experts think the same can occur once again this year.

This time, the base plans might not be hiked. Instead, mid-range and high-end plans might be targeted. The charges could be varied based on data consumption, speed of data, and usage time.

Data Cuts Expected in New Plans

Experts also expect a reduction in bundled data for new recharge packs. Users may have to buy extra data separately. Executives from Airtel and Vodafone India have already supported these changes.

Airtel MD Gopal Vittal recently stated, “Current tariffs do not support user upgradation.”