The two largest telecom companies, Reliance Jio and Bharti Airtel, are developing several plans for raising tariffs following the parliamentary elections. Media sources cite business executives as saying that Bharti Airtel plans to raise headline pricing while Jio could choose an alternative course of action.
Jio is anticipated to concentrate on programs that promote increased data consumption rather than raising rates in order to persuade customers to switch to more expensive plans. It is expected that this approach would raise Jio's average income per subscriber.
Bharti's prices already fetch a premium over Jio's, and the gap between the two is projected to expand. Jio, which had a flat Arpu on a sequential basis in the October-December quarter, expects to profit from Bharti customer attrition, which will boost its ARPU growth. With the start of the Indian Premier League, Jio expects a jump in data use.
Increasing 5G Data Usage
Executives stated that due to increasing data use in 5G packs, people are switching to pricier plans for a better watching experience. They also emphasized Jio's efforts to increase adoption of its JioFiber internet offerings by pairing them with other services. With no complementary items in these bundles, users are more aware of their worth.
Furthermore, executives were also cited by a credible source as stating, "We expect Arpu to rise without going for a headline tariff hike with users moving to higher 5G packs, higher realization from Fiber plans, and some churn from other operators."
According to analyst forecasts, Jio is growing at the fastest rate in the residential internet market, with a 37.6% year-over-year gain. Analysts, however, point out that Airtel has acted pro-actively in order to increase its Average Revenue Per User (ARPU) over ₹200 per month by modifying pricing across a number of contracts. But Airtel could have to raise headline rates in order to keep growing its ARPU. With an ARPU of ₹208, Airtel now tops the sector, above both Jio's ₹182 and Vodafone Idea's ₹145.
Brokers have taken into account that operators would raise tariffs after the elections; many anticipate that Bharti will lead this drive.
After the elections, we anticipate tariff increases to be announced (July to October time period). A significant 15% tariff rise is what we anticipate. According to a recent study by Bernstein, "Bharti will spearhead the tariff hike, which will result in Arpu stabilizing to ₹260+ levels by FY26."
The market is still consolidating; Bharti Airtel and Reliance Jio together account for over 82% of the market, with Vodafone Idea behind at 18.5%. Notably, Jio's subscriber share increased from 41.6% during the same time of the previous fiscal year to 46% during the October–December quarter. In addition, Bharti's subscriber share rose from 31.2% in the same period of the previous fiscal year to 33.5% from October to December.
