By Admin 
- Companies will increase prices to expand 5G and increase ARPU.
Mobile Recharge Costlier: Recharge plans are going to be expensive once again in India. A report by Centrum Institutional Research states that a huge increase of 12-15% in tariffs may be seen in the next three to four months. The report estimates that the number of subscribers of Bharti Airtel and Reliance Jio will continue to grow, while Vodafone Idea will expand its 5G network.
How much will be the impact on recharge?
If telecom companies increase the rate by even 15%, then the cost on Rs 199 recharge plan will increase to around Rs 229. The data plan of Rs 299 will increase to around Rs 344-359. The long term plan of Rs 999 can increase to around Rs 1149. It is clear from this that you may have to spend more for recharge in the future than now.
Why are companies increasing rates?
Companies like Reliance Jio and Airtel are investing heavily to strengthen 5G infrastructure across the country. Companies also want to compensate for this from the customers.
Companies want to increase their ‘Average Revenue Per User’ (ARPU) target. Average Revenue Per User i.e. ARPU shows how much average revenue you are earning from every active user in your business in a given period.
Another reason for increasing the prices is that Reliance Jio and Airtel dominate the telecom sector market in India. Now that there is less competition, it is easier for companies to increase prices. The report also estimates a huge increase in the number of subscribers of Bharti Airtel and Reliance Jio. According to the report, about 70 lakh new subscribers will be added to Reliance Jio every quarter, while Bharti Airtel is expected to add about 50 lakh new subscribers during the same period.
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