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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