Airtel And Reliance Jio Might Not Increase Prices In FY22

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Airtel and Reliance Jio are leading the telecom sector as Vi is planning to raise money to upgrade its network and clear its debt. Airtel and Reliance Jio have the same active subscribers base and that's why there are chances both will not increase tariffs in 2021-22, as per Crisil research firm said.

 
Airtel And Reliance Jio Might Not Increase Prices In FY22

According to the report, Reliance Jio has a 33.7 percent share, whereas Airtel sits at 33.6 percent share in terms of the active user base. The firm said that both telecom operators have huge competition and might not increase prices. The report said that there are 250 to 300 million non 4G users, which will be the biggest target of these telecom operators.

This conversion might increase the revenue of these telecom operators. Besides, the firm added that telecom operators have been trying to attract subscribers for a very long, but inadequate spectrum was the main reason why telecom operators are lagging behind.

However, a recent spectrum auction is likely to improve the condition of the network quality of all telecom operators. More spectrum might help them attract a subscriber base and increase the market share of Reliance Jio, Airtel, and Vodafone-Idea.

"The pandemic slowed 4G subscriber additions to 12 million in the June 2020 quarter, with smartphone shipments probing new lows. There was a recovery in the quarters that followed, but growth in 4G subscriber additions remain below the pre-pandemic rate. However, the March 2021 quarter would have been better because India's 4G subscriber base is likely to have risen to 710-720 million in fiscal 2021," the rating agency said.

The firm added that telecom operators might not go for the tariff war the one we have seen in 2019. Besides, they might not go for any partnership with any smartphone players for bundling services and unlikely to go for partnerships with OTT players to attract users to their platform. On the other hand, Reliance Jio is planning to join hands with Itel to launch affordable devices in the country. In addition, the company launched JioPhone 2021 plans to offer unlimited calling and data offer to its users.

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