Since Reliance Jio entered the telecom sector with its affordable 4G data services in 2016, price wars have become fiercer resulting in declining revenues and huge debts among phone carriers.
Airtel and Jio both announced significant tariff hikes effective July 3, which will increase average revenue per user (ARPU) while also providing them with the funds to make key investments in 5G infrastructure.
Reliance Jio’s New Plan
Reliance Jio announced on Thursday a tariff increase of up to 25% across its mobile plans, beginning July 3. Additionally, Reliance will introduce plans with unlimited data benefits.
The company’s most cost-effective monthly prepaid plan, previously priced at Rs 155, now costs Rs 189 and provides 2GB of data daily over 28 days. In addition, their popular three-month plan now comes with 6 GB per day over 84 days while their premium annual plan now comes with 2.5 GB per day over an entire year – all these changes taking effect immediately.
Jio has announced pricing changes which limit free 5G usage to higher data packs; however, according to them “unlimited 5G is at the core of Jio’s mission of driving industry innovation and sustainable economic growth in India. Access to high-quality internet is central to Digital India.” Jio currently is conducting its inaugural global stand-alone 5G rollout with 85% of India’s 5G cells operating.
Plan Type | Old Plan | New Plan |
Prepaid Plans | Rs. 399 (84 days validity, 1.5GB/day data) | Rs. 449 (56 days validity, 2GB/day data) |
Rs. 599 (84 days validity, 2GB/day data) | Rs. 599 (84 days validity, 2GB/day data) | |
Rs. 999 (84 days validity, 3GB/day data) | Rs. 799 (84 days validity, 2GB/day data) | |
Rs. 1999 (180 days validity, 1.5GB/day data) | Rs. 2599 (365 days validity, 2GB/day data) | |
Postpaid Plans | Rs. 399 (1 month validity, 75GB data, 2000 mins) | Rs. 399 (1 month validity, 75GB data, 2000 mins) |
Rs. 599 (1 month validity, 100GB data, 2000 mins) | Rs. 599 (1 month validity, 100GB data, 2000 mins) |
Airtel’s New Plan
As 2024 unfolds, leading telcos have introduced new prepaid plans with added benefits for their subscribers. Airtel’s most recent offering comes complete with Disney+ Hotstar bundle and unlimited 5G data – perfect for beginners looking to start out the year right.
The Rs 499 Prepaid Recharge Plan offers 3GB data daily with a validity period of 28 days and unlimited voice calls and 100 SMS per day, in addition to unlimited voice calls and 100 SMS per day. Users also get Netflix Basic subscription for one month as well as Apollo 24|7 Circle subscription, Wynk Music membership and Hellotunes freebies!
Airtel currently provides three annual plans tailored to consumers’ usage needs: two with over-the-top (OTT) benefits and one offering bulk data usage options for those wanting to stay online.
Plan Type | Old Plan | New Plan |
Prepaid Plans | Rs. 399 (84 days validity, 1.5GB/day data) | Rs. 449 (56 days validity, 2GB/day data) |
Rs. 598 (84 days validity, 1.5GB/day data) | Rs. 698 (56 days validity, 2GB/day data) | |
Rs. 1299 (365 days validity, 2GB/day data) | Rs. 1498 (365 days validity, 2GB/day data) | |
Postpaid Plans | Rs. 499 (1 month validity, 75GB data, unlimited calls) | Rs. 499 (1 month validity, 75GB data, unlimited calls) |
Rs. 749 (1 month validity, 125GB data, unlimited calls) | Rs. 749 (1 month validity, 150GB data, unlimited calls) |
Conclusions for airtel and Jio tariff hikes
Now, both Airtel and Jio have announced significant tariff hikes, which will become effective July 3. Prepaid users of airtel and jio still have an opportunity to avoid these rate increases by stacking or queuing data packs ahead of time – as both offer annual plans which are cheaper than their monthly ones.
The new tariffs aim to boost revenues and recoup investments made in 5G networks, and encourage heavier data users to upgrade to higher tier plans – providing much-awaited monetization of 5G services.
These tariff increases are the result of the protracted price war that began after Mukesh Ambani entered the telecoms industry in 2016. Since then, Jio and Airtel have become near duopolies within the sector; their battle for supremacy has drastically diminished revenue growth across all telecom operators companies, leaving many saddled with massive debts.
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