Prepaid Plans Price Hike: The days of cheap prepaid tariffs for telecom subscribers might be numbered in India, especially as almost all large operators except Reliance Jio prepare to hike tariff rates. According to analysts, December might witness a sector-wide tariff hike of around 15 per cent in an attempt to shore up profit margins amid the slowdown in revenue growth.
This trend is a continuation of the slowdown observed during the September quarter when revenue growth across the telecom sector grew at just 10 per cent, against four consecutive quarters of growth of 14–16 per cent. Analysts think December revenues will still be weaker, forcing companies to trigger a new round of tariff hikes. Low inflation and the absence of major state elections make the environment perfect to raise tariffs.
It has already moved on this trend by hiking its prepaid plan prices. It increased its ₹1,999 annual plan by about 12% and its ₹509 by approximately 7%. The annual plan remains one of the most popular among long-standing, loyal customers, and the last major hike took place about 15 months ago. Vodafone Idea had indicated earlier that future increases would be similarly paced, implying a gradual approach to price hikes.
Airtel also moved to increase prices by ₹10 for its basic ₹189 calling plan. BSNL, on the other hand, did not raise the price of its plans but cut the validity of many of its prepaid packs to increase revenue. Both moves reflect the general problem faced by the industry: increasing the cost of operations while revenues grow slower than expected. According to analysts, this will set a trend, and in the next few months, other operators will follow suit.
These changes could force consumers to reconsider their mobile spending and plan choices, particularly in the case of annual or long-term plans. This push for higher tariffs by telecom companies underlines the sector’s continuous attempt at stabilising finances while sustaining service levels. As such, prepaid customers across India would most likely bear the brunt of the changed environment in the near term.