look news india
Lok Sabha elections are currently going on in the country. All four phases of elections have been completed peacefully. But meanwhile, after this Lok Sabha election, mobile phone users may get a big shock. Yes.. their mobile bill may increase by about 25 percent. Telecom companies are preparing to increase prices for the fourth time in recent years.
Between 2019 and 2023, these telecom companies increased prices thrice. This will increase their annual income. According to a private report, telecom companies may soon make a proposed increase in tariffs. These mobile companies have invested heavily in 5G and now they need to increase their profits. This will increase from 3.2 per cent to 3.6 per cent of total consumer expenditure on telecom for urban households. Whereas for rural customers it will increase from 5.2 percent to 5.9 percent.
A private organization estimates that an increase of about 25 percent in mobile tariff will increase the annual earnings of telecom companies by 16 percent. For Bharti Airtel it will be Rs 29 and for Jio it will be Rs 26. The country's largest telecom company Jio reported ARPU of Rs 18.1 for the March quarter. For Bharti Airtel and Vodafone Idea, it was marginally at Rs 208 and Rs 145 for the October-December 2023 period. India's Airtel and Vodafone Idea have not yet released their March quarter figures.
Who will benefit most?
According to the information, the telecom operator can encash its capital investment in 5G by increasing the price. In such a situation, by the end of the calendar year, the annual earnings of telecom companies will increase by about 10 to 15 percent. This will be around Rs 100 per customer. For this, companies will increase 4-G, 5-G tariffs. Also, the low priced packs will be discontinued gradually. This price increase is unlikely to reduce the number of customers. They will continue to get high speed connectivity. Customers will be willing to pay for telecommunication services.
Telecom companies will get ghee and banana!
Analysts estimate that Bharti Airtel and Jio will benefit the most from the increase in prices of wireless packs. According to a private report, both these companies have gradually increased their ARPU by 58 percent and 33 percent between September-2019 and September-2023. Whereas the last three tariff hikes had seen an increase of 14-102 percent. VI saw ARPU growth of 33 percent during this period. Additionally, wireless revenues declined seven percent across the board. According to an analyst from Mumbai, the number of Vodafone customers has continuously decreased. Due to which customers have not got the benefit of increasing its tariff and upgrading low priced packs. Despite three tariff increases, the company's wireless revenue has declined in September 2019.