Tariff Hike Alert: Mobile Recharge Plans Set to Rise by Up to 25% by End of 2025

Telecom Companies Gear Up for Major Price Surge

If you’re already feeling the pinch from rising mobile recharge costs, brace yourself—a substantial tariff hike is expected by the end of 2025, potentially increasing prices by up to 25%. According to a recent analysis by global brokerage firm Bernstein, leading telecom players in India—Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi)—are likely to revise their tariffs again between November and December 2025.

This upcoming hike could mark the fifth major increase in six years, signaling a continued trend in the telecom industry of moving toward higher revenue per user through strategic pricing.

What to Expect: Price Increase Between 10–25%

Bernstein’s forecast suggests that telecom tariffs could jump 10% to 20%, with some plans potentially rising by 25%, similar to the hike observed in July 2024. This shift would directly impact millions of prepaid and postpaid users across India, making routine mobile recharges more expensive than ever before.

The move is anticipated to:

• Strengthen ARPU (Average Revenue Per User)

• Drive higher profit margins for telecom companies

• Prioritize revenue from existing users rather than solely focusing on new customer acquisition

Telecom Revenue Outlook: Sustained Growth Ahead

The revenue projections for India’s telecom giants remain strong. Bernstein expects Airtel and Jio to maintain medium to high revenue growth between 2025 and 2027. The growth is attributed to a stable ARPU, a gradual increase in user base, and a shift in business strategy.

Unlike the rapid expansion seen from 2019 to 2025, the industry is now shifting towards a more sustainable 10% CAGR (Compound Annual Growth Rate) model. This indicates a mature market environment where quality of service and revenue generation per user take precedence over aggressive customer acquisition.

Consumer Impact and Advice

With this forecasted tariff increase, consumers are advised to:

• Consider long-term recharge plans before the hike

• Monitor announcements from their respective telecom providers

• Look for bundled offers or discounts that could offset the rising costs

While the hike may seem burdensome, telecom providers argue that it’s essential for ensuring network improvements, better 5G rollout, and sustainable operations in a competitive market.