Mobile phone bills might go up soon. After the upcoming elections in India, telecom companies in the country might raise mobile rates by around 20 percent.
This information comes from a recent report by Bank of America Securities (BofA).
The report highlights that the telecom industry is working hard to improve its situation.
Despite facing revenue losses in the second quarter, major companies haven’t been able to raise rates due to tough competition and the fear of losing customers.
Lately, companies like Airtel and Vi (Vodafone-Idea) have requested an increase in mobile rates.
These companies aim to boost the average revenue per customer (ARPU), which is a key indicator of a telecom company’s financial health.
Growing ARPU related to 5G is challenging in the near future, so companies might have no choice but to raise 4G tariffs.
The report suggests that telecom companies, having invested heavily in 5G services in India, may introduce more expensive plans.
This increase in tariff plans could happen in two or three phases. While 5G plans might not be extremely expensive, they are expected to be priced higher than 4G plans.
The last time mobile tariff prices were increased was in November 2021, with companies raising prices by 20 to 25 percent.
Airtel raised prices by 25 percent, and Vodafone Idea increased tariffs by 20 to 25 percent.
For 5G services, Reliance Jio and Airtel may stop offering unlimited data plans for premium customers.
Additionally, these companies might charge 5 to 10 percent more for 5G services compared to 4G starting from the second half of this year.
Industry experts believe that by increasing tariffs, these companies aim to balance the significant investments made in 5G technology
and their revenues, as they had previously introduced unlimited plans to attract customers.
