Indian Telecom Operators May Hike Tariffs by December 2025 As Part of Tariff Repair Efforts: Report

Operators may improve upon the revenue share they earn from existing users, as per the report.

Written by Shaurya Tomer, Edited by Siddharth Suvarna | Updated: 18 April 2025 17:52 IST

Indian Telecom Operators May Hike Tariffs by December 2025 As Part of Tariff Repair Efforts: Report

Photo Credit: Unsplash/ NordWood Themes

The magnitude of hikes is expected to be less than could be less than the 2019-2025 period

Highlights

Mounting 4G and 5G expansion costs are said to be driving the hike
Analysts predict regular but smaller tariff hikes after 2025
Government recently converted Vi's spectrum dues into equity shares

Indian consumers may soon have to shell out more to continue enjoying telecommunications services. As per a report, telecom operators such as Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) could again commence a periodic tariff hike by the end of the year in line with their recent tariff repair efforts to enhance the revenue visibility. The market is predicted to become more consolidated, with both Airtel and Jio potentially strengthening their positions and occupying a large market share.

Tariff Hike in 2025

Citing an analysis by the global brokerage firm Bernstein, Moneycontrol reports that telecom providers in India could raise tariffs by 10 to 20 percent by December 2025. It could potentially be the fourth major price hike in the last six years, the most recent of which took place in July 2024 when companies raised their tariffs by as much as 25 percent. The hike is attributed to the mounting capital needs of telcos following the strengthening of 4G and expansion of 5G technologies.

“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 said.

Airtel Launches New Prepaid Recharge Plan With JioHotstar Subscription

The brokerage firm reportedly predicts mid to high-teen revenue growth for both Airtel and Jio in the 2025-27 period, courtesy of steady subscriber additions and strong Average Revenue per User (ARPU) growth. Rather than depending on just onboarding new consumers, the telecom operators are also reported to improve upon the revenue share they earn from existing users.

Meanwhile, Vi is said to be in a tough financial spot, although some of the troubles are said to have been alleviated following the government's agreement to convert the telco's spectrum dues into equity shares, increasing its stake from 22.6 percent to 48.99 percent.

“The equity conversion signals the government's commitment to preserve a three-player market structure & increases the probability of price discipline & future tariff hike,” the report adds.

Bernstein reportedly expects a 15 percent tariff hike in December 2025, followed by predicted annual hikes from 2026 to 2033. Although tariff hikes are speculated to become more regular, their magnitude could be less than compared to the 2019-2025 period. The tariff hikes are reported to help the telecom operators achieve a 10 percent tariff compound annual growth rate (CAGR). Further, Vi's capital expenditure may help India's third-largest telco to stabilise its user decline in the second half of the 2026 financial year.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Airtel, Jio, Bharti Airtel, Reliance Jio, Tariff hike

Shaurya Tomer

Email Shaurya Tomer

Shaurya Tomer is a Sub Editor at Gadgets 360 with 2 years of experience across a diverse spectrum of topics. With a particular focus on smartphones, gadgets and the ever-evolving landscape of artificial intelligence (AI), he often likes to explore the industry's intricacies and innovations – whether dissecting the latest smartphone release or exploring the ethical implications of AI advancements. In his free time, he often embarks on impromptu road trips to unwind, recharge, and ...More