Is Mobile Tariff Hike in India Set to Increase the Phone Bills by 12–15%?

India may see a 12–15% mobile tariff hike within the next three to four months as telecom operators look to increase revenues and improve ARPU.

According to a Centrum Institutional Research Q1FY27 telecom and internet sector preview research, the telecom sector may experience an additional 12–15% mobile tariff hike in India over the next three to four months as the pricing environment has improved aftermarket consolidation. Regarding the telecom industry's financial performance, the report stated that the three private telecom operators are anticipated to report a 1-1.5% quarter-over-quarter increase in Average Revenue Per User (ARPU) in the June quarter.

This increase is expected to be driven by the migration of subscribers from 2G to 4G and 5G networks, the addition of postpaid customers and an increase in the number of days during the quarter. According to Centrum, Vodafone Idea will probably continue to face pressure as market share increases continue to favor Bharti Airtel and Reliance Jio.

“The pricing environment has become more favourable with only 3+1 players and we expect another 12-15% tariff hike over the next 3 to 4 months." -  Centrum Institutional Research

What Will India's Next Tariff Increase Look Like?

According to the analysis tracked by CIO Bulletin, the next round of tariff hikes will involve more than simply a direct price increase based on the statements and hints provided by the management of India's private telecom carriers. A shift in the pricing structure will accompany the price increase. People can currently pay the same amounts for different uses. The telecom companies may charge customers based on their consumption in the future. This basically means that the customers will have to pay more if they use more data. Because the cost of data transport would not change independent of consumption, telcos will be able to significantly increase their ARPU, topline revenues, and margins on services.