Indian Telecom Companies Likely to Increase Mobile Tariffs by December 2025 Amid Tariff Correction Push

Indian telecom users might soon face increased costs for their services. According to a report, companies like Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) may implement another round of tariff hikes by the end of the year. This move aligns with their recent efforts to improve revenue visibility through periodic price adjustments.

The market is expected to see further consolidation, with Airtel and Jio potentially strengthening their positions. Both companies are likely to capture a larger share of the market. The global brokerage firm Bernstein suggests that Indian telecom providers could raise tariffs by 10 to 20 percent by December 2025.

Telecom Tariff Hike Predictions

This anticipated increase would mark the fourth significant price hike in six years. The last adjustment occurred in July 2024 when tariffs rose by up to 25 percent. These hikes are driven by the growing capital needs of telecom companies as they bolster 4G networks and expand 5G technologies.

"We anticipate a tariff hike in November-December 2025, in line with ongoing tariff repair efforts across the industry. This move could serve as a key catalyst and enhance revenue visibility for the sector," the report said.

Revenue Growth Expectations for Airtel and Jio

The brokerage firm forecasts mid to high-teen revenue growth for both Airtel and Jio from 2025 to 2027. This growth is attributed to steady subscriber additions and robust Average Revenue per User (ARPU) improvements. Instead of solely focusing on acquiring new customers, these operators aim to boost revenue from existing users.

Meanwhile, Vi faces financial challenges, though some issues have been mitigated after the government agreed to convert its spectrum dues into equity shares. This conversion increased the government's stake from 22.6 percent to 48.99 percent.

Vodafone Idea's Financial Position

"The equity conversion signals the government's commitment to preserve a three-player market structure & increases the probability of price discipline & future tariff hike," the report adds.

Bernstein anticipates a 15 percent tariff increase in December 2025, followed by annual hikes from 2026 to 2033. Although these increases may become more frequent, they are expected to be less substantial than those seen between 2019 and 2025.

Future Tariff Hike Trends

The projected tariff hikes aim to help telecom operators achieve a compound annual growth rate (CAGR) of 10 percent in tariffs. Additionally, Vi's capital expenditure could stabilise its user decline during the second half of the financial year ending in March 2026.

Airtel has also introduced new prepaid recharge plans featuring JioHotstar subscriptions, while Vodafone Idea launched a Rs. 340 prepaid plan with various benefits. Airtel has partnered with Blinkit for quick SIM card deliveries across India.