India’s major telecom operators—Reliance Jio, Bharti Airtel, and Vodafone Idea—are considering a 10–12% tariff hike for mid- and high-paying users by November–December 2025. This move is driven by strong subscriber growth, rising 5G investments, and the need to boost average revenue per user (ARPU)
1. 📈 Surge in Active Subscribers
May 2025 witnessed a record 7.4 million net additions, bringing active users to 1.08 billion—a 29-month high. Reliance Jio added 5.5 million subscribers, while Airtel gained 1.3 million—signs of growing acceptance of past hikes
2. 🎯 Strategic Focus on Mid‑ & High‑Value Users
Analysts suggest targeted increases for mid‑ to high-tier plans. Earlier blanket increases (11–23% in July 2024) impacted the lower end too much. This time, tiered plans—based on data volume, speeds, and peak‑time usage—are expected timesofindia
3. 💼 Monetization & 5G Investment
Bernstein analysts forecast that such tariffs—heightened late 2025—will push ARPU toward ₹300 by FY27, improving revenue predictability. Major operators are also facing pressure to pay for spectrum and roll out 5G networks
4. ⚠️ Risk of Churn vs. Revenue Gains
While price hikes boost income and fund expansion, analysts warn of subscriber churn if low-end users are hit. That’s why a tiered strategy is critical—protect the mass market while monetizing premium segments .
5. 🌍 Industry Outlook & Financial Health
ET Telecom reports expect a fourth major tariff hike in six years, with sector revenue in FY25 growing ~12–14% thanks to previous increases. Jio and Airtel may continue to dominate, while Vi stands to benefit from a consolidated pricing environment
✅ Summary
India’s telecom sector is poised to raise tariffs by 10–12% by year-end 2025, focused on mid- and high-paying users via tiered pricing. The move is fuelled by record subscriber growth, 5G rollout needs, and efforts to bolster ARPU—while carefully avoiding mass churn.
