Jio, Airtel announce; Jio, Airtel announce hike in plan prices

Jio, Airtel announce; Jio, Airtel recharge plans news: Jio and Airtel have launched their new plans in IndiaRevised tariff plans have been announced. Among the possible reasons for the price hike, Airtel emphasised on an ARPU of over Rs 300 for a ‘financially healthy business model’ for telcos in India. Jio said the new unlimited plans aim to strengthen a sustainable telecom industry in India.Airtel, Jio Tariff Hike News: Reliance Jio and Bharti Airtel have announced their revised tariff plans in India. While prices have increased by over 20 per cent in the case of some recharges for both telcos, these decisions have been taken as expected after the rapid rollout of 5G in the country. Vodafone Idea is expected to increase the price of 5G in India by 12 per cent.

(Vi) will also soon follow similar steps and present its revised plans.

Jio and Airtel tariff hike and ARPU: What is the connection? Jio did not give any clear reason for the price hike in its press release, but Airtel has shared some glimpses that may give us a hint as to why this price hike was expected and almost inevitable. Airtel has cited average revenue per user of over Rs 300 as a “financially healthy business model” for telcos in India.

(ARPU) Similarly, Jio said it aims to “build a sustainable telecom industry” with new unlimited plans. Airtel claims this ARPU will allow for substantial investment in technology and network spectrum, while delivering modest returns on capital. According to The Indian Express, Airtel’s ARPU in March Q4 of FY24 was Rs 1.52 crore. ARPU was Rs 209. Compared to Airtel in the same quarter, Jio (Rs 181.70) and Vi (Rs 146) were significantly lower.

An analyst note by Bernstein It was feared that after the general electionsTheTelecommunicationsService providers are expected to increase the prices of their plans. This will help Airtel to charge Rs 280 by FY26 and Rs 300 by FY27 ARPU The disruption in the telecom sector started in 2016 when Jio announced its 4G services to be free for a limited period and then gradually raised the price on them. This intense disruption caused other telecom companies to drastically reduce prices and lower data rates to remain competitive. As a result, India enjoyed the cheapest data rates worldwide and users rushed to buy SIM connections from Jio. However, other telecom companies called for gradual price hikes at regular intervals to improve their financial position.

5G services in India This can also be attributed to the massive increase in expenditure for telecom service providers due to the rollout and development of . These companies also offered unlimited 5G data to users who recharged with plans of 1.5GB/day data. However, this benefit has now been limited to 2GB/day data plans. For reference, the latest spectrum auction saw a lukewarm response from service providers. It garnered Rs 11,340.78 crore for the government, which is just 12 per cent of the reserve price of Rs 96,317.65 crore.