Jio followed by Airtel in raising tariffs: Jio introduces new plan hike

Date:

Mumbai: Known as India’s top telecom operator, Reliance Jio announced a 12-27 percent hike in mobile tariffs. Following suit, Bharti Airtel announced a rate increase of 10-21 percent on Friday. These adjustments come immediately after the 10th spectrum auction, which concluded in just two days with a muted response from the industry. Both operators’ revisions will be effective from July 3.

Reliance Jio: Access to unlimited free 5G services for customers from Jio Telecom has been discontinued. “Reliance Jio Infocom Chairman Akash M Ambani stated that introducing new plans is a step towards fostering industry innovation and driving sustainable growth through investments in 5G and AI technology. Currently, subscribers on plans priced above Rs 239 can access unlimited free 5G service with Jio. Others need to top up their plan with a Rs 61 voucher to avail of unlimited 5G service. The last time Jio raised mobile service rates was in December 2021, along with Bharti Airtel and Vodafone Idea.

With over 47 crore mobile subscribers, Jio holds about a 41 percent market share. Alongside the tariff hike, Jio has introduced two new apps—JioSafe and JioTranslate—which are provided free to customers for one year. Priced at Rs 199 per month, JioSafe is a quantum-secure communication app used for calling, messaging, file transfer, etc. JioTranslate, an AI-enabled multilingual communication app, facilitates translating voice calls, voice messages, text, and images.

Bharti Airtel: The revisions in Bharti Airtel’s mobile tariffs ensure a very modest price hike (less than 70 paise per day), effective from July 3, particularly on entry-level plans. The Sunil Mittal-led telecom firm emphasized that this adjustment aims to minimize any burden on budget-challenged consumers.

Airtel stated that achieving a mobile Average Revenue Per User (ARPU) above Rs 300 is necessary to maintain a financially healthy business model for telecom companies in India. This level of ARPU will support the substantial investments required in network technology and spectrum, offering a modest return on capital.

In the unlimited voice plans category, Airtel has increased tariffs by about 11 percent, adjusting rates from Rs 179 to Rs 199, from Rs 455 to Rs 509, and from Rs 1,799 to Rs 1,999. In the daily data plan category, the Rs 479 plan has been increased to Rs 579, marking a 20.8 percent increase.

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