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    Home / News / Business News / Jio, Airtel, Vi may increase tariffs by 10% this year
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    Jio, Airtel, Vi may increase tariffs by 10% this year
    The last major tariff hike was in July 2024

    Jio, Airtel, Vi may increase tariffs by 10% this year

    By Mudit Dube
    Jan 14, 2025
    04:57 pm

    What's the story

    Telecom giants Reliance Jio, Bharti Airtel, and Vodafone Idea are said to be contemplating a tariff hike of up to 10% in 2025.

    The Financial Express reported this, citing insights from industry analysts.

    The last major tariff hike by these companies was a 25% increase that was introduced in July 2024 after a two-year gap.

    Pricing strategy

    5G-specific pricing could accompany tariff hike

    Along with the possible tariff hike, the telcos are also considering 5G-specific pricing. This is part of their overall focus on monetization in the changing telecom landscape.

    Analysts Akshat Agarwal and Ayush Bansal of Jefferies told The Financial Express, "Jio's potential listing in 2025 will likely make it more amenable to higher tariffs to boost its growth."

    Revenue impact

    Tariff hike aims to enhance telecom sector's growth

    The proposed tariff hikes could increase the average revenue per user (ARPU) by at least 25%. This significant rise in ARPU is likely to aid the expansion and growth of the telecom sector in 2025.

    However, Jio's revenue gain could be slower as it lost 11 million subscribers after the previous tariff hike, which was attributed to SIM card consolidation.

    Subscriber shift

    Market dynamics post-tariff hike

    Post the tariff hike, market dynamics may change for Airtel and Vodafone Idea.

    Airtel's gains in the rural market could slow down as most of the network rollouts have already been completed.

    On the other hand, Vodafone Idea could witness a rise in its market share as it plans to start network rollouts only after its recent capital raise.

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