Mobile Recharge Plans May Get Costlier Soon

India's telecom subscribers may soon have to pay more for mobile services, as tariff prices are expected to increase by up to 15% over the next three to four months, according to a Centrum Institutional Research report. The report attributes the likely hike to the current market structure, where only three major private telecom operators and state-owned BSNL remain, creating a favourable environment for tariff revisions. It also estimates that the Average Revenue Per User (ARPU) for private telecom companies could increase by around 1.5% during the June quarter, driven by the migration of users from 2G to 4G and 5G networks, growth in postpaid subscribers, and a higher number of working days during the quarter.

Meanwhile, Reliance Jio and Bharti Airtel continue to strengthen their market positions by attracting customers from Vodafone Idea, which is still facing financial challenges. Jio is expected to add nearly 7 million new subscribers during the quarter, while Airtel could gain around 5 million users. Vodafone Idea is projected to add only about 200,000 subscribers. With rapid expansion of 4G and 5G services, mobile data consumption is rising sharply across the country. Jio and Airtel have already rolled out 5G services in more than 90% of Indian districts, while Vodafone Idea is expanding its 5G footprint to nearly 100 cities. The company's adjusted gross revenue (AGR) liability has also reduced significantly following a recent decision by the Central Government, providing financial relief.