After Jio announced the new mobile plan tariff hikes, this was followed by Airtel announcing the mobile traffic hikes, including Bharti Hexacom Ltd circles. This new mobile plan revised will take effect from 3rd July 2024.
New Airtel mobile plan revised
Why did Telecom companies increase mobile plan prices?
Telecom companies, including Reliance Jio, are raising tariffs due to the recent spectrum auction. These auctions are expensive, and companies need to recoup their investments. Jio’s Average Revenue Per User (ARPU) hasn’t grown much, only increasing from Rs 178.80 in fiscal 2023 to Rs 181.70 in fiscal 2024.
Additionally, Jio and Airtel have invested heavily (over Rs 2 lakh crore) in 5G rollouts, which won’t generate immediate returns. This price hike, the first significant one since November 2021 (20-25% increase), is likely to improve the financial health of telecom companies but could also lead to some customer churn.
Also Read: Reliance Jio Increases Plan Prices, Alongside Launch of Two Applications
Conclusion
The tariff hike by Reliance Jio and other telecom companies is a strategic move driven by the need to recover investments in spectrum auctions and 5G infrastructure. While it may improve their financial standing, it could also lead to some customers switching to cheaper providers. This price increase reflects the changing landscape of the telecom industry, where companies are balancing affordability with network upgrades and financial sustainability.
