Jio, Airtel, And Vi Could Increase Tariff By Diwali 2022

Last Updated on May 25, 2022 by Anu Joy

Jio, Airtel, and Vi, India’s major telecom carriers, are believed to be preparing for a tariff hike on their 3G and 4G services. According to a new report by ET, the price increase will most likely occur around Diwali this year. It’s worth noting that Airtel, Vi, and Jio all raised their rates in India in November and December of last year, so this hike isn’t unprecedented.

According to the report, the three telecom carriers are also expected to raise their charges by 10 to 12 percent by Diwali this year in order to enhance their Average Revenue Per User (ARPU). Despite the price hike, all three firms are likely to acquire 35 to 40 million new users, primarily in the rural sector.

According to a separate report from research firm William O’ Neil & Co, a tariff boost of 10 to 12 percent combined with sustained subscriber growth could allow Jio, Vi, and Airtel to increase their ARPU by roughly 10 percent year over year by the end of 2023.

This fight to improve ARPU is nothing new, as telecom companies have done it before. Gopal Vittal, Bharti Airtel’s MD and CEO for India and South Asia, stated earlier this year that the company would implement the second round of rate increases in 2022. During the company’s earnings call in January, Vodafone Idea MD and CEO Ravinder Takkar expressed similar sentiments.

All three providers are vying for the 5G spectrum in the next spectrum auction, and have already demonstrated proof of concepts and network speeds to potential corporate clients. We should get a taste of 5G this year, with a full rollout expected in late 2023.