BUSINESS
Sources suggest that the proposed tariff increase is part of a broader strategy by private telecom companies to boost revenue, which will allow them to invest further in their network infrastructure, particularly for 5G services.
Several reports indicate that mobile recharges may become more expensive soon, as major private telecom companies, including Reliance Jio led by Mukesh Ambani, Bharti Airtel under Sunil Mittal, and Vodafone Idea (Vi), are planning a significant increase in their tariff plans in the upcoming months. According to various sources, Jio, Vi, and Airtel are expected to raise the prices of their recharge plans, potentially by November-December 2025.
Sources suggest that the proposed tariff increase is part of a broader strategy by private telecom companies to boost revenue, which will allow them to invest further in their network infrastructure, particularly for 5G services. Industry insiders indicate that several factors could be contributing to the tariff hike by telecom providers, including the need to extend their 5G network across more regions and the substantial costs associated with acquiring spectrum and enhancing their current network infrastructure.
Earlier, all private telecom companies, including Mukesh Ambani's Jio and Sunil Mittal's Airtel, had substantially increased their mobile tariffs in mid-2024, which led to a large number of users switching to the state-owned telecom provider, BSNL.
According to data released by the Telecom Regulatory Authority of India (TRAI), these companies collectively lost almost 10 million subscribers in September 2024. Mukesh Ambani's Jio experienced the most significant decline, losing 7.9 million users, while Sunil Mittal's Bharti Airtel lost 1.4 million, and Vi (Vodafone-Idea) saw a decrease of 1.5 million customers.
As private telecom companies continue to lose subscribers, BSNL, which has recently seen a revival, has become the primary beneficiary, with more than 5.5 million subscribers transferring their numbers to the government-owned provider between July and October 2024.
The Department of Telecommunications (DoT) reported that 1.5 million subscribers switched to BSNL from private telecom providers like Jio, Vi, and Airtel in July 2024, and this number increased to 2.1 million in August 2024. Data also indicated that approximately 1.1 million and 0.7 million users moved to BSNL in September and October 2024, respectively.
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