Mobile Tariffs in India | Hyderabad, July 6 (Maxim News) : Mobile tariffs in India may rise by 12 to 15 percent in the next three to four months. Centrum Institutional Research made this forecast in its Q1FY27 Telecom and Internet Sector Preview report.
The firm cited market consolidation as the main reason. It said the current market structure now favours a tariff hike.
India’s telecom market currently has only three private operators and one state-run carrier, BSNL. According to Centrum, this limited competition gives operators room to raise prices.
Moreover, the firm expects two to three more such hikes in the coming quarters. Each hike could push up costs for millions of mobile users across India.
Additionally, Centrum forecast that the average revenue per user, or ARPU, for private telecom operators will grow by 1 to 1.5 percent on a quarter-on-quarter basis. Several factors drive this growth.
First, more users are moving from 2G to 4G and 5G networks. Second, the number of postpaid customers is rising. Third, the current quarter has more billing days than the previous one.
Mobile tariffs in India Hike Expected as Telecom Firms Seek to Recover 5G Investment Costs
Telecom companies have been planning tariff revisions for some time now.
However, they held back due to competitive pressure. Now, with the market consolidated, they see a clear window to act.
Companies say that offering 5G services for free has not delivered the profits they expected. As a result, they want to recover their large investments in network infrastructure.
Furthermore, operators aim to raise ARPU significantly. They want more revenue from each customer.
Therefore, a tariff hike serves two goals at once. It helps recover past investment costs. It also boosts future earnings per subscriber. Centrum’s report now confirms that this move is likely sooner rather than later.
Meanwhile, the timing adds pressure on common users. Rising global inflation and economic uncertainty already strain household budgets.
A higher mobile recharge cost will add to this burden. India has over one billion mobile subscribers. Even a small rise in tariffs affects a large number of people directly.
However, no telecom operator has officially announced a hike yet. The Centrum forecast is based on market analysis, not company disclosures.
Nevertheless, industry observers say the conditions for a hike are now firmly in place. Users may want to consider longer-validity plans before any revision takes effect. (Maxim News)
