With effect from July 3, Bharti Airtel has announced a significant rise in cellphone prices, ranging from 10% to 21%. This action comes after rival Reliance Jio made a similar statement, suggesting a dramatic change in the mechanics of pricing in the Indian cellular market.
Bharti Airtel said in a news statement that the updated rates are meant to relieve any financial burden on consumers who are cost-conscious by keeping the increase relatively small, especially for entry-level plans. The telecom behemoth, headed by Sunil Mittal, emphasized that in order to maintain a robust business model that supports critical investments in network technology and spectrum, average revenue per user (Arpu) must be greater than Rs 300.
Bharti Airtel has specifically changed the prices for both its daily data and unlimited voice plans. For example, the costs for unlimited voice plans have increased by almost 11%; they are now Rs 199 instead of Rs 179, Rs 455 instead of Rs 509, and Rs 1,799 instead of Rs 1,999. The daily data plan category saw a 20.8 percent increase in price, with the Rs 479 plan being lifted to Rs 579.
This pricing change is the telecom sector's first major uptick in about three months, after a muted reaction to the most recent spectrum auction. With a 12–25% increase across all of its cell contracts, Reliance Jio started the pattern of pricing hikes, emphasizing its attempts to support its Arpu which had been stagnating at Rs 181.7 in recent quarters.
Industry analysts predicted that Reliance Jio's move will cause a larger market ripple effect, with other significant private-sector telecom operators making comparable revisions, as previously reported by a credible source. Vodafone Idea may follow suit in response to Bharti Airtel's action.
The most recent significant tariff increase affecting the entire industry was put into effect in December 2021, and it caused an average price rise of 20%. Leading the charge on that campaign was Bharti Airtel, indicating a coordinated move by telecom carriers to drive financial sustainability in the face of growing operating expenses.
On July 3, the updated deals from Bharti Airtel and Reliance Jio are expected to launch simultaneously. The trend of 5G adoption in India, where both companies have been providing 5G services at 4G costs, is anticipated to be impacted by the tariff increases. Jio claimed 108 million 5G users as of the end of the fourth quarter of 2024–25, while Airtel claimed 72 million.
