- By Prateek Levi
- Wed, 23 Apr 2025 03:40 PM (IST)
- Source:JND
Indian consumers may soon have to pay more to continue using telecom services. According to reports, major operators like Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) are likely to implement another round of tariff hikes by the end of 2025. This move is part of ongoing efforts to improve revenue visibility, with the market expected to see further consolidation—Airtel and Jio are likely to strengthen their positions and capture larger market shares.
Tariff Hike Expected in 2025
Citing a report by global brokerage firm Bernstein, Moneycontrol states that telecom providers in India could raise tariffs by 10–20% by December 2025. This would mark the fourth major hike in six years, the most recent occurring in July 2024, when tariffs went up by as much as 25%. The hike is attributed to rising capital expenditure demands as telcos continue to invest in 4G upgrades and expand 5G networks.
“We anticipate a tariff hike in November–December 2025, in line with ongoing tariff repair efforts across the industry. This move could serve as a key catalyst and enhance revenue visibility for the sector,” the report noted.
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Bernstein projects mid- to high-teen revenue growth for Airtel and Jio between 2025 and 2027, driven by steady subscriber additions and improved Average Revenue Per User (ARPU). Instead of relying solely on acquiring new customers, telecom companies are also looking to increase earnings from their existing user base.
Meanwhile, Vi remains in a difficult financial position. However, its situation has improved slightly following the Indian government's decision to convert the company’s spectrum dues into equity, raising the government’s stake from 22.6% to 48.99%.
“The equity conversion signals the government’s commitment to preserving a three-player market structure and increases the likelihood of price discipline and future tariff hikes,” the report adds.
Bernstein expects a 15% tariff hike in December 2025, with annual hikes likely to follow between 2026 and 2033. While price increases may become more regular, they’re not expected to be as steep as those seen between 2019 and 2025. These hikes could help telecom companies achieve a 10% tariff CAGR. Additionally, Vi’s capital spending may help the company stabilise its user base by the second half of the 2026 financial year.