Reliance Jio has raised its tariffs by up to 25%, citing the need to increase the average revenue per user (ARPU) to provide better services and invest in 5G and AI.Blogs

The average revenue per user India’s ARPU to be the lowest

In fact, you will see that Reliance has raises tariffs by 1.5% to 25%, and we’ll discuss this in detail. But let me also tell you that globally, if you look at the average revenue per user (ARPU), you will find India’s ARPU to be the lowest. Telecom companies said they needed to increase tariffs because the ARPU in India is very low. We’ll discuss this with some data.

Telecom companies have raises tariff After 30 months longs.

After nearly 30 months, yes, more than 2 years, telecom companies have increased tariffs. This time, Reliance started it. The spectrum was being auctioned by the government, but it wasn’t very successful. Since 2010, this is the third-lowest revenue for the government from spectrum auctions. In 2024, the telecom companies wanted to increase the ARPU. ARPU means average revenue per user. Currently, the ARPU in India is around ₹181 per month per user. Telecom companies want to increase this because it has stagnated for the past few years.

Telecom companies claim that unless they increase ARPU, they won’t be able to provide better services. They also mention that India’s ARPU is the lowest in the world. For instance, Jio has increased prices, and their cheapest plan of ₹155 with 2GB data is now ₹189. Monthly plans have increased from ₹155-₹399 to ₹189-₹449 depending on the data. Three-month and annual plans have also seen increases.

Why did this hike happen?

As anticipated, tariff prices were expected to increase after the elections. The demand for higher tariffs had been ongoing. ARPU in India is still 16% below the pre-Jio launch levels. Before Jio, 1GB data used to cost ₹500. Even with the latest hike, ARPU is still lower than Airtel’s. If ARPU reaches ₹300, it would mean much higher prices for mobile data plans.

(08:00) The chairman of Bharti Enterprises, Sunil Mittal, has said that ARPU in India should be at least ₹300 to ensure telecom companies don’t face huge losses and can invest in better services. Telecom companies have accumulated significant debt, and the latest spectrum auction resulted in sales of ₹1.5 lakh crore, which needs to be paid over the next 20 years.

Impact raises tariff on 5G services?

With debts of over ₹4 lakh crore, Vodafone Idea, BSNL, and other companies have significant financial challenges. Telecom companies argue that higher ARPU is essential for survival and investment in 5G. When 5G services were introduced, no extra charge was levied, unlike the transition from 2G to 3G or 3G to 4G. Companies are now hiking tariffs to fund 5G investments.

The majority of mobile phone connections in India are with Reliance, followed by Airtel. Jio has the largest subscriber base. The video provides detailed insights into the reasons behind the tariff hike and its implications on the telecom sector.

Airtel: Need to tighten the pocket of postpaid customers too

New Delhi. Bharti Airtel has increased tariff charges. Postpaid customers will now have to pay even more. The company’s plans priced at 399 rupees and 499 rupees are now 449 rupees and 549 rupees respectively. The 1599 rupee plan will now be available for 1,999 rupees. Similarly, the 999 rupee plan has been changed to 1,199 rupees.

Airtel Tariff (in rupees):

Vodafone: Instead of the popular tariff plan 719,After raises now available for 859 rupees

Vodafone has also increased its popular plan by 140 rupees. Changing the 179 rupee plan, the company has provided it with a validity of 21 days. Customers will get a plan of 259 rupees for 21 days. For 28 days, customers will have to take plans of 349 rupees and 449 rupees. For 84 days, plans of 599 rupees and 999 rupees will have to be taken. Similarly, annual plans worth 20,000 rupees will now be available for 23,000 rupees.https://timesofindia.indiatimes.com/technology/tech-news/after-reliance-jio-and-airtel-vi-announces-mobile-tariff-hike-heres-full-list-of-new-plans-and-prices/articleshow/111347888.cms

Vodafone Idea is also not behind: