Jio, Airtel, Vi likely to hike tariff by Diwali 2022: Report
Airtel, Reliance Jio and Vodafone Idea increased their tariffs last year to boost their ARPU. They are likely to hike tariffs again this year.
Updated:Tue, May 24, 2022 4:43pm
Three major telecom operators in India, that is, Reliance Jio, Bharti Airtel and Vodafone Idea or Vi are likely to hike their tariffs later this year. As per a new report, this price hike is likely to happen by Diwali this year.
ET Telecom quoting a report by analysts wrote that the three telecom operators are likely to hike their tariffs by 10 to 12 percent by Diwali this year in a bid to boost their Average Revenue Per User (ARPU). The report also said that despite this tariff hike, the three telecom companies combined are expected to add around 35 to 40 million new subscribers primarily owing to the growth in the rural sector. Another factor that is adding to the overall optimism of the telecom industry, as per the analysts, is Vi not losing subscribers in the quarter ending by March this year despite hiking its tariffs between November-December last year.
Furthermore, the report by research firm William O' Neil & Co says that the tariff hike of 10 to 12 percent coupled with the steady subscriber gains could help the Jio, Vi and Airtel to increase their ARPU by around 10 percent on an on-year basis by the end of the year 2023. This, in turn, is expected to boost the ARPU of Airtel, Jio and Vodafone Idea to Rs 200, Rs 185 and Rs 135 respectively.
It is worth noting that this is not the first time that we have been hearing about the second round of tariff hike. Earlier this year, Bharti Airtel MD and CEO for India and South Asia Gopal Vittal said that Airtel would go for a second round of tariff hike in 2022. He also said that this tariff hike isn't expected to happen in coming three to four months.
"I do expect a tariff hike sometime in 2022. I don't think it's going to happen in the next 3-4 months because the SIM consolidation and growth needs to come back but I do expect another round of tariff increase," Vittal had said during the company's earnings call in February this year.
Vodafone Idea MD and CEO Ravinder Takkar had also mentioned a similar pattern during the company's earnings call in January this year. "We would expect that its possible that there could be another price hike in 2022 but certainly at some point the price hike will take place," he had said.
It is worth remembering that Airtel, Vi and Jio hiked their tariffs in India between November-December last year.