After Jio, Bharti Airtel announces up to 21% tariff hike from July 3

Reliance Jio and Airtel have hiked tariffs by 10% to 25% following a subdued response to the recent government spectrum auction

Bharti Airtel has unveiled a substantial increase in mobile tariffs, ranging between 10 per cent to 21 per cent, effective from July 3. This move follows a similar announcement by rival Reliance Jio, indicating a significant shift in pricing dynamics within the Indian telecom sector.

In a press release, Bharti Airtel stated that the revised tariffs aim to maintain a modest increase, particularly on entry-level plans, to alleviate any financial strain on budget-conscious consumers. The telecom giant, led by Sunil Mittal, emphasised the necessity for average revenue per user (Arpu) to exceed Rs 300 to sustain a healthy business model conducive to making essential investments in network technology and spectrum.

Specifically, Bharti Airtel has adjusted rates across its unlimited voice and daily data plans. For instance, prices for unlimited voice plans have seen increases of approximately 11 per cent, with rates now adjusted from Rs 179 to Rs 199, Rs 455 to Rs 509, and Rs 1,799 to Rs 1,999. In the daily data plan category, the Rs 479 plan has been raised to Rs 579, reflecting a 20.8 per cent hike.

This tariff revision marks the first significant increase in the telecom industry in about 30 months, following a subdued response to the recent spectrum auction. Reliance Jio initiated the tariff hike trend with a 12-25 per cent increase across its mobile plans, highlighting efforts to bolster its Arpu, which had stagnated at Rs 181.7 in recent quarters.

As earlier reported by Business Standard, industry analysts anticipated Reliance Jio's announcement would set off a broader ripple effect in the market, with other major private-sector telecom players making similar adjustments. Bharti Airtel's move may further trigger a similar response from Vodafone Idea.

The last notable industry-wide tariff hike was implemented in December 2021, resulting in a 20 per cent increase in average prices. Bharti Airtel had spearheaded that initiative, signalling a concerted effort among telecom operators to address financial sustainability amid rising operational costs.

Both Bharti Airtel and Reliance Jio's revised plans are scheduled to go live simultaneously on July 3. The tariff adjustments are expected to influence the trajectory of 5G adoption in India, where both companies have been offering 5G services at 4G prices. As of the end of the fourth quarter of 2024-25, Jio reported 108 million 5G subscribers, while Airtel recorded 72 million.