Reliance Jio and Bharti Airtel announced tariff hikes which will lead to a massive mobile phone bill surge.
Marking a significant rate increase by telcos since 2021, Reliance Jio and Bharti Airtel announced tariff hikes which will lead to a massive mobile phone bill surge. On Thursday, Jio disclosed a 12-25% increase and Airtel revealed its price updates on Friday. This was based on the high investments purposed at leveraging average revenue per user (ARPU).
Airtel announces revised mobile tariffs. These prices apply to all circles, including Bharti Hexacom Ltd. Circles. The new tariffs for all Airtel plans will be available on https://t.co/jASVh3skYf. in starting July 3rd, 2024. pic.twitter.com/3GL5vTF1xr
— ANI (@ANI) June 28, 2024
Bharti Airtel’s monthly plan of Rs 179 will be Rs 199 following the new hike plan offering 2GB of data per day, 100 SMS and unlimited calls. Airtel’s new tariffs also be applicable for prepaid and postpaid recharge. Rs 1,799 annual plan will now cost Rs 1,999. Postpaid plans range from Rs 449 to Rs 1,199, with daily data plans at Rs 265 and daily data add-on plans increased to Rs 22 from Rs19. Unlimited 5G data will only be available with plans offering 2GB/day data or beyond, once the price hike is set in motion.
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Reliance Jio increased its monthly recharge plan, Rs 155 will now cost Rs 189, which is the smallest price hike of all. While the most used Rs 239 monthly plan with 1.5 GB data per day, will be increased to Rs 299 with almost a 25% increase. The annual package surged from Rs 2,999 to Rs 3,599 with the highest rate surge in an annual package. However, the new tariff rates might affect over 472 million users. The revised price will come into effect starting from July 3.
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According to BofA Securities (formerly, Bank of America Lynch), the report denotes that 36% of Jio and Airtel users are anticipated to accept a tariff hike of 20-25% post-elections. The telecom sector tries to stick to the pricing strategies to generate good revenue to cope with the competitive market.
Airtel and Jio have invested over Rs 2 lakh crore in 5G, sans immediate benefits and it was said that the tariff hikes are due to the spectrum auction, as telcos intend to monetize their investments. This price surge may affect the users as every package has gone through a thumping increase in tariff.
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