Indian Telcos Begin Prepaid Tariff Adjustments Amid Expected Sector-Wide Price Rise

Indian telecom operators have initiated changes to selected prepaid plans, signalling the start of a potential sector-wide tariff increase. 

Vodafone Idea and Bharti Airtel have adjusted their annual and short-term plans, while BSNL modified validity periods without price hikes.

Prepaid Plan Adjustments by Major Telcos

Vodafone Idea has raised the price of its ₹1,999 annual prepaid plan by 12% and the ₹509 84-day plan by 7%. 

Bharti Airtel increased its entry-level voice-only ₹189 plan by ₹10. 

State-owned BSNL opted to shorten the validity of certain lower-tier plans without altering the listed price. These measures reflect a gradual approach to restoring profitability amid changing market dynamics.

Industry Perspective

Vodafone Idea has experienced a loss of low-end users to Airtel and Jio, while retaining a portion of long-standing subscribers. Previous discounts on annual plans were linked to the absence of 5G services. 

With offerings now comparable to competitors, the operator is revisiting pricing to maintain revenue stability. Management has indicated that future price increases will be similar in scale to prior hikes, with approximately a 15-month interval since the last adjustment.

Read More: Airtel and Google Partner to Bring RCS Messaging to India.

Conclusion

The recent adjustments by Indian telecom operators indicate the beginning of a recalibration of prepaid tariffs in the sector. With revenue growth moderating, further price increases appear likely in the near term. 

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