Mobile Bills Set to Rise Again? Telcos Eye 10-12% Tariff Hike by Year-End
Telecom Operators May Increase Prices for Mid & High-Paying Users Amid Rising Subscriber Growth
Indian telecom users could face another round of mobile tariff hikes by the end of 2025, with prices expected to rise by 10–12%, particularly affecting mid- and high-paying consumers. This potential increase follows a sharp rise in active subscribers, prompting telecom operators to consider revising rates once again.
Why Are Tariffs Going Up?
According to industry executives and analysts, the surge in active subscribers—7.4 million additions in May alone—has strengthened telecom companies’ confidence in implementing further price hikes. The active subscriber base reached 1.08 billion in May, the highest in 29 months, marking the fifth consecutive month of net additions.
Reliance Jio led the growth with 5.5 million new users, increasing its active market share to 53%, while Bharti Airtel added 1.3 million, securing a 36% share. Vodafone Idea, however, continued to lose subscribers, further consolidating the market dominance of Jio and Airtel.
Targeted Tariff Hikes Instead of Blanket Increases
Unlike the 11–23% base plan hike in July 2024, the next round of increases is expected to be more strategic and segmented. Analysts suggest telecom operators may adopt a tiered pricing model, adjusting costs based on:
- Data usage patterns
- Peak-hour access
- Data speeds
- Low-data consumers
A telecom analyst quoted by ET stated, “There is a strong case for hiking prices primarily for middle and upper-band users. Any increase at the lower end could risk subscriber churn.”
Operators Push for Pricing Overhaul
Bharti Airtel’s Managing Director, Gopal Vittal, recently criticized the current “one-size-fits-all” pricing model, calling it “broken” during an earnings call. Vodafone Idea executives have also supported a revised tariff structure that better aligns with consumer usage and market realities.
Brokerage firm Jefferies predicts that Airtel and Jio will continue gaining market share, allowing them to monetize further through higher tariffs. Meanwhile, BNP Paribas forecasts double-digit revenue growth for the sector between FY25–FY27, driven by these pricing adjustments and a shift toward bundled plans.
What This Means for Consumers
While mid- and high-end users may see higher bills, telecom companies could reduce data limits in basic plans to push users toward premium packs. Experts advise consumers to review their plans and consider switching to cost-effective options before the hikes take effect.
With 5G expansion playing a key role in future subscriber growth, the telecom industry’s pricing strategies will likely evolve further—making affordability and value-for-money key concerns for Indian mobile users.
