Indian telecom carriers, such as Bharti Airtel, Reliance Jio, and Vodafone Idea, may start periodic pricing increases before the end of the year in order to increase revenue visibility. The market is projected to grow more concentrated, with Airtel and Jio potentially increasing their holdings. The increase is related to telecoms’ increased capital requirements as 4G and 5G technologies progress.
According to a report, Indian telecom operators are likely to raise mobile tariffs by 10-20% by the end of 2025, marking the fourth big rise in six years due to rising capital requirements and regulatory constraints. Vodafone Idea and Bharti Airtel are also looking for higher returns on capital.
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According to Bernstein, a tariff increase is anticipated in the telecom sector between November and December 2025, which might improve revenue visibility. Strong ARPU growth and consistent subscriber additions are anticipated to fuel mid-to-high teen revenue growth for leading telecom providers Bharti Airtel and Reliance Jio in 2025–2027.
While Bharti Airtel aims for higher capital returns, analysts conclude that Vodafone Idea needs to raise prices to finance its 4G growth and delayed 5G launch.
According to reports, the Indian government increased its stake in Vodafone Idea from 22.6% to 48.99% by converting spectrum dues into equity. This action is a component of larger telecom changes that were unveiled in September 2021 with the goal of enhancing industry viability. The stock conversion, according to analysts at Morgan Stanley and Bernstein, confirms the market’s anticipation of further tariff increases.
According to reports, Vi’s operational recovery is still slow and is hampered by continuous subscriber losses. Analysts credit the industry’s recent pricing power to a change in strategic goals following the 2019 Supreme Court verdict on AGR and Jio’s disruptive arrival. The government has backed the rise in July 2024 and reiterated that India’s telecom charges are still among the lowest in the world.
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Analysts predict that telecoms will be able to raise prices more frequently going forward, but less significantly than they might in 2019–25. India would be able to increase its telecom expenditures to pre-Jio (FY16) 1.3 percent of GDP during this tariff reset period.
