Recharge Plans May Increase by December: Technology Desk, New Delhi. Indian customers may soon have to spend more than before for telecom services. According to a report, telecom operators like Bharti Airtel, Reliance Jio and Vodafone Idea (Vi) may start periodic tariff hikes by the end of 2025 as part of their recent tariff repair efforts. So that, revenue visibility can be increased. The dominance of only a few big companies is going to increase in the market, in which Airtel and Jio will further strengthen their position and take over most of the market.
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Tariff hike in 2025 increased price
According to a report by Moneycontrol, citing analysis by global brokerage firm Bernstein, telecom providers in India may increase tariffs by 10 to 20 percent by December 2025. This could be the fourth major price hike in the last six years, with the most recent hike taking place in July 2024, when companies raised tariffs by 25 percent. The hike was said to meet the increasing capital needs of telcos after strengthening 4G and expanding 5G technology.
The report said, ‘We expect tariff hikes in November-December 2025, in line with the ongoing tariff repair efforts in the industry. This move could act as a necessary catalyst for the sector and increase revenue visibility.’
The brokerage firm has reportedly forecast mid-to-high-ten revenue growth for Airtel and Jio over the 2025-27 period, led by steady subscriber additions and strong average revenue per user (ARPU) growth. Instead of relying on adding new customers, telecom operators are also focusing on improving the revenue share they get from existing users.
Vi Relief & Tariff Hike Expected
Meanwhile, Vi is reportedly facing a financial crunch, although some of the problems have eased after the government agreed to convert the company’s spectrum dues into equity shares, increasing the government’s stake from 22.6 per cent to 48.99 per cent.
The report further said, “The equity conversion reflects the government’s commitment to maintaining a three-player market structure and increases the possibility of price discipline and tariff hikes in the future.”
Bernstein reportedly expects a 15 percent tariff hike in December 2025, followed by annual hikes from 2026 to 2033. While tariff hikes are speculated to be more regular, their magnitude may be lower than in the 2019-2025 period. The tariff hikes are expected to help telecom operators achieve a 10 percent tariff compound annual growth rate (CAGR).