Mobile tariff hike news: Considering the ever -increasing number of mobile users and the continuous increase in the duration of mobile usage, there is a possibility of regular increase in tariffs in the future by telecom operators. This has been revealed in a report by the Central Institutional Research that states that regular growth in tariffs by telecom operators in the country will continue in future as well, as companies are planning to increase average revenue per user.
The telecom industry has seen three major tariffs in December 2019, November 2021 and July 2024. The report states that regular tariffs will continue to increase in future, which will help telecom companies to improve their revenue. With rising prices, more customers are likely to move to premium plans, which costs more per user.
250 million customers use 2G services
The report also said that India’s 2G customer base is expected to decrease significantly in the next 5-6 years. Currently, around 250 million customers in India still use 2G services. Among telecom companies, 23 percent of Airtel’s customers are at 2G, while Vodafone Idea (VIL) has about 40 percent of the customers. However, with increasing use of 4G and 5G, the number of 2G users over time is expected to be negligible.
A major trend in the industry is 2G to 4G migration, as well as the number of postpaid customers is also increasing. This change is improving the total revenue per user. Additionally, data consumption is increasing, customers are choosing higher price data plans, such as 2GB of plans per day instead of 1GB. Services like international roaming and OTT subscription have also increased significantly, their revenue has almost doubled in the last five years.
Three major private players
The Indian telecom region is currently in an important phase. Competitive intensity has come down, three major private players- Jio, Airtel and VIL- as well as the state-owned BSNL are controlling the market. Regular tariff hikes are increased by user revenue per user, improved customer mixture with 4G and postpaid users, and strong data usage trends are helping telecom companies grow.
Additionally, profitability is improving with operational costs being stable and stronger margins are strengthened. FY26-FY27 is expected to increase free cash flow in FY26-FY27 after companies slow down their capital expenditure after 5G rollouts.
Meanwhile, India’s satellite communication sector is also expanding, which has support for government initiatives like Telecom Technology Development Fund Scheme and Telecom Act, 2023. Open FDI policies, progress in quantum satellite technology and expansion of Vsat network are promoting innovation in this field.
Starlink entered into agreements with Bharti Airtel and Jio in India
Elon Musk’s satellite internet company, Starlink has entered into agreements with Bharti Airtel and Jio in India, while Vodafone is also discussing with Idea. However, the report states that Starlink may face challenges due to the need for competitive pricing in the market known for regulatory barriers, high import taxes and low -cost broadband services in India.
