Although analysts have differing opinions on when tariff increases will take place this time, they are anticipating them to be in the 10–20 percent range. color:#252525">
With the introduction of 5G services, telecom operators have entered the cycle of massive capital investments. The topic of the upcoming round of 4G plan price increases is once more being discussed. After two years, the telecom companies raised their prepaid plan charges by 20-25 percent in November of last year. mso-fareast-font-family:"Times New Roman";color:#252525"> mso-fareast-font-family:"Times New Roman";color:#E36B00">Although analysts have differing opinions on when tariff increases will take place this time, they are anticipating them to be in the 10–20 percent range. color:#252525"> color:#252525">Analysts, however, have claimed that the tariff increase will be less than that in 2021, largely due to inflationary pressures, according to Financial Express. color:#252525"> color:#252525">The following phase of tariff increases is anticipated to occur within the next six to twelve months, according to Nitin Soni, senior director at Fitch Ratings. color:#252525"> color:#252525">He continued by saying that a delay in telecom companies raising tariffs is anticipated, in large part due to consumers’ negative attitudes against inflationary pressure. mso-fareast-font-family:"Times New Roman";color:#252525"> In order to increase their average revenue per user (Arpu), which is an important measure of their profitability, telecom companies must increase their tariffs. Businesses like Bharti Airtel and Vodafone Idea have recently pushed for rate increases in order to increase their revenues and manage their rising operating costs. Bharti Airtel has often said that it won't hesitate to take the initiative in raising rates. Prior price increases have shown that Bharti Airtel raises rates first, with competitors Reliance Jio and Vodafone Idea following as a result of the market's reaction. In July of last year, the cellular companies increased the postpaid plan costs.
According to analysts, the companies will continue to offer the services under the present 4G plansfor some time to come under the 5G tariff plans. background:#EDFAFF"> The rating agency maintains a stable view for the Indian telecom industry and anticipates increased Arpu, possibilities for 5G enterprise activity, and inexpensive spectrum usage fees to lead to growth in revenues and profits. India currently offers one of the lowest cellphone tariffs in the world. This development is attributable to Reliance Jio's disruption of the telecom industry.