After Jio’s Tariff Hike, Airtel’s Tariff Hike is here! Details
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Jio’s tariff hike is here and it seems like Airtel didn't spend any longer in coming up with a tariff hike soon after Jio. This seems to be in alignment with the below statements in the recent Airtel Earnings Call for the quarter ending March 2024.
“ I think the return that the industry really needs is predicated on tariff repair and this is really the heart of the problem that we have today with our pricing and tariffs are at an absurdly low level relative to any other part of the world so tariff repair is solely needed for return ratios to improve,” says Gopal Vittal Managing Director & Chief Executive Officer of Bharti Airtel.
In another statement in the same call, Mr. Gopal also says “If competition does not follow then it will hurt us and that is a challenge so we just have to wait and see when the time is right.”
Now that Jio has increased its tariff prices in India by 20%, the time does seem “right” for other telcos to jump in on the tariff hike bandwagon.
In this article, we are going to be sharing the complete details of Jio’s Tariff Hike in 2024, new plan prices as well as what’s Airtel’s stance on tariff hikes and the newly hiked plans of Airtel.
Reliance Jio Infocomm on 27th June 2024 announced Jio’s plans price hike. Interestingly, the telco termed the hiked plan prices as “new plans” being launched. Users starting from 3rd July 2024 will get to see the newly hiked prices of Jio’s recharge plans starting from as low as Rs.15 (now ₹19) to the yearly plan of Rs.2999 (now ₹3599).
Below is a detailed chart of the Jio recharge plan’s hiked prices:
.
Plan Type |
Existing Plan Price (Rs) |
Benefits (Unlimited voice & SMS plans) |
Validity (days) |
New Plan Price (Rs) |
Monthly |
155 |
2 GB |
28 |
189 |
209 |
1 GB/day |
28 |
249 |
|
239 |
1.5 GB/day |
28 |
299 |
|
299 |
2 GB/day |
28 |
349 |
|
349 |
2.5 GB/day |
28 |
399 |
|
399 |
3 GB/day |
28 |
449 |
|
2-month plans |
479 |
1.5 GB/day |
56 |
579 |
533 |
2 GB/day |
56 |
629 |
|
3-month plans |
395 |
6 GB |
84 |
479 |
666 |
1.5 GB/day |
84 |
799 |
|
719 |
2 GB/day |
84 |
859 |
|
999 |
3 GB/day |
84 |
1199 |
|
Annual |
1559 |
24 GB |
336 |
1899 |
2999 |
2.5 GB/day |
365 |
3599 |
|
Data add-on |
15 |
1 GB |
base plan |
19 |
25 |
2 GB |
base plan |
29 |
|
61 |
6 GB |
base plan |
69 |
|
Postpaid |
299 |
30 GB |
bill cycle |
349 |
399 |
75 GB |
bill cycle |
449 |
These new Jio hiked plans prices will be effective from July 3rd onwards. Commenting on the Jio’s Tariff Hike, the company wrote
“Jio cares & reaffirms customer-first commitment through new plans - New plans to be available from 3rd July 2024. JioBharat/JioPhone value proposition remains unchanged and industry-best.”
This means as per the new Jio recharge plans hike, your JioBharat/JioPhone plans will still remain at the same price as previously.
Some users had this expectation that Jio would start charging extra for its unlimited 5G offer after its tariff hike. However, to a bitter-sweet surprise, Jio will still continue to offer unlimited 5G data on its data recharge plans but now only applicable on plans with 2GB per day data benefits.
After Jio increased its tariff prices, Airtel was highly expected to follow Jio’s footsteps and introduce a tariff hike for its subscribers.
Airtel on 28th June, announced a price hike for Airtel recharge plans starting 3rd July.
Airtel wrote, "In this light, we welcome the announcements in the industry to repair tariffs. Airtel will also revise its mobile tariffs as indicated below, from July 3rd. We have ensured that there is a very modest price increase (less than 70p per day) on the entry level plans, in order to eliminate any burden on budget challenged consumers."
The detailed Airtel hiked plans prices can be viewed here:
Airtel hiked plans prices ✔️
In its latest Earnings Call for the quarter ending March 2024, Mr. Gopal, the MD of Bharti Airtel said,
“We have stopped investing on any capacity investments on 4G and therefore I think the return that the industry really needs is predicated on tariff repair and this is really the heart of the problem that we have today with our pricing and tariffs are at an absurdly low-level relative to any other part of the world so tariff repair is solely needed for return ratios to improve.”
Earlier, Mr Gopal also said,
“My own sense is that you will need substantial repair in the industry. We are already at just over Rs. 200 ARPU. I think the right level of ARPU even at Rs. 300 would still be one of the lowest in the world so there is a substantial repair to be had in the industry”
If you are taken aback by Airtel’s comment that “tariffs are at an absurdly low level in India,” don’t worry, you aren’t the only one. But is there any truth in this statement? Are telecom tariffs really at an absurdly low level in India?
Let’s talk about some data. Here’s a tariff rate of 1GB of data in India vs some other countries:
Country |
Population |
1 GB data tariff rate |
Israel |
95.6 Lakhs |
$0.04 |
Italy |
5.89 crores |
$0.12 |
India |
141.72 crores |
$0.17 |
China |
141.22 crores |
$0.41 |
France |
6.8 crores |
$0.23 |
US |
33 crores |
$5.62 |
South Korea |
5.16 crores |
$12.55 |
Source: Tariff & Population Data from the year 2022 report of Statista
We can see India is one of the countries with the lowest tariff rates but are these “absurdly low” as the comment of Mr. Gopal says?
In a country with over 141 crore people and a much lower average income compared to developed countries, even low telecom tariffs can still be a big expense for many. Comparing India’s tariffs to places like the US or France doesn’t make sense because it ignores key factors like:
Market Competition
Income Levels
Economies of Scale
Service Quality and Coverage
Spectrum Costs
Government Regulationsd
These factors play a huge role in determining what tariffs should be. So, saying India’s tariffs are "absurdly low" without considering these factors is misleading.
Also, not to forget India's large population provides a huge market potential, allowing telecom companies to maintain low tariffs while still capturing significant revenue.
Saying a tariff rate is absurdly low in a country like India is pretty subjective (and a bit out of touch with the core reality)
But, these are just the views of the author. Do share with us in the comments below if do you think tariff rates in India are absurdly low as Mr Gopal, the MD & CEO of Bharti Airtel says?
Also, just an interesting fact:
Jio’s ARPU (Average Revenue Per User) stands at ₹178.8 for FY 2022 - 2023 while Airtel’s ARPU stands at ₹209 IN Q4’24 vs ₹193 in Q4’23 so Airtel is still kind of ahead of its biggest competitor but still thinks even an ARPU of ₹300 would be the lowest in the world?
.
List of sources used in this article:
Jio Infocomm Press Release on Jio’s Tariff Hike
Reliance Industries Annual Report for Year 2022 - 2023
Bharti Airtel Earnings Call for Q4, 2024
.
Thanks to @Uhtnas4444 for also sharing this news with us here: Jio Tariffs increased (Effective 3rd July)
Also read: Amazon Prime Day sale in India 2024 coming soon!
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On a more serious note, People who want to waste time, they always can, they did it even before internet era.
People who want to learn or earn ( online) they can now afford High speed internet that is cheaper than any wired connection ( optical fiber or broadband)
I agree, Economic inflation affects everything. Everything is going to be little bit more expensive with time. Also they have hungry shareholders to feed.
As consumers we should be more concerned about our interests not profit margins of multi-billion dollar companies.
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1
1
Hi
How
for example, in its JioFiber prepaid T&C, Jio says, "To avoid abuse of Unlimited Data benefits by a few that affects the vast majority of other users, for such plans, RJIL will identify and treat any consumption by a customer beyond 3300 GB of data in a 30 day recharge cycle; as misuse of the benefits provided."https://www.jio.com/jcms/en-in/fiber/jiofiber-prepaid-service/
even though this was written in the JioFiber prepaid T&C, I am assuming they would have the same rules applicable for prepaid customers in general as well.
Overall, this is the simple concept:
1. Speed reduces to @ 64 Kbps after a user exhausts their plan's daily limit
2. Once the plan's data limits are exhausted, a user can also use "unlimited" data up to 3300GB in a 30 day recharge cycle at that low @ 64Kbps speed
hope this helped a bit..will need to check once for Airtel though..
Is Airtel 1559 plan which has 24 GB annually offer unlimited 5G?
.
Don't worry it is coming soon in future. 🤫
On a more serious note, People who want to waste time, they always can, they did it even before internet era.
People who want to learn or earn ( online) they can now afford High speed internet that is cheaper than any wired connection ( optical fiber or broadband)
I agree, Economic inflation affects everything. Everything is going to be little bit more expensive with time. Also they have hungry shareholders to feed.
As consumers we should be more concerned about our interests not profit margins of multi-billion dollar companies.
Don't see any change to the 699 plan 😄. (3gb/day for 56 days with prime membership)
anyways, thanks a lot for adding that up. Will update.
Jio’s tariff hike is here and it seems like Airtel didn't spend any longer in coming up with a tariff hike soon after Jio. This seems to be in alignment with the below statements in the recent Airtel Earnings Call for the quarter ending March 2024.
Now that Jio has increased its tariff prices in India by 20%, the time does seem “right” for other telcos to jump in on the tariff hike bandwagon.
In this article, we are going to be sharing the complete details of Jio’s Tariff Hike in 2024, new plan prices as well as what’s Airtel’s stance on tariff hikes and the newly hiked plans of Airtel.
Reliance Jio Infocomm on 27th June 2024 announced Jio’s plans price hike. Interestingly, the telco termed the hiked plan prices as “new plans” being launched. Users starting from 3rd July 2024 will get to see the newly hiked prices of Jio’s recharge plans starting from as low as Rs.15 (now ₹19) to the yearly plan of Rs.2999 (now ₹3599).
Below is a detailed chart of the Jio recharge plan’s hiked prices:
.
Plan Type
Existing Plan Price (Rs)
Benefits (Unlimited voice & SMS plans)
Validity (days)
New Plan Price (Rs)
Monthly
155
2 GB
28
189
209
1 GB/day
28
249
239
1.5 GB/day
28
299
299
2 GB/day
28
349
349
2.5 GB/day
28
399
399
3 GB/day
28
449
2-month plans
479
1.5 GB/day
56
579
533
2 GB/day
56
629
3-month plans
395
6 GB
84
479
666
1.5 GB/day
84
799
719
2 GB/day
84
859
999
3 GB/day
84
1199
Annual
1559
24 GB
336
1899
2999
2.5 GB/day
365
3599
Data add-on
15
1 GB
base plan
19
25
2 GB
base plan
29
61
6 GB
base plan
69
Postpaid
299
30 GB
bill cycle
349
399
75 GB
bill cycle
449
These new Jio hiked plans prices will be effective from July 3rd onwards. Commenting on the Jio’s Tariff Hike, the company wrote
“Jio cares & reaffirms customer-first commitment through new plans - New plans to be available from 3rd July 2024. JioBharat/JioPhone value proposition remains unchanged and industry-best.”
This means as per the new Jio recharge plans hike, your JioBharat/JioPhone plans will still remain at the same price as previously.
Some users had this expectation that Jio would start charging extra for its unlimited 5G offer after its tariff hike. However, to a bitter-sweet surprise, Jio will still continue to offer unlimited 5G data on its data recharge plans but now only applicable on plans with 2GB per day data benefits.
After Jio increased its tariff prices, Airtel was highly expected to follow Jio’s footsteps and introduce a tariff hike for its subscribers.
Airtel on 28th June, announced a price hike for Airtel recharge plans starting 3rd July.
Airtel wrote, "In this light, we welcome the announcements in the industry to repair tariffs. Airtel will also revise its mobile tariffs as indicated below, from July 3rd. We have ensured that there is a very modest price increase (less than 70p per day) on the entry level plans, in order to eliminate any burden on budget challenged consumers."
The detailed Airtel hiked plans prices can be viewed here:
In its latest Earnings Call for the quarter ending March 2024, Mr. Gopal, the MD of Bharti Airtel said,
Earlier, Mr Gopal also said,
If you are taken aback by Airtel’s comment that “tariffs are at an absurdly low level in India,” don’t worry, you aren’t the only one. But is there any truth in this statement? Are telecom tariffs really at an absurdly low level in India?
Let’s talk about some data. Here’s a tariff rate of 1GB of data in India vs some other countries:
Country
Population
1 GB data tariff rate
Israel
95.6 Lakhs
$0.04
Italy
5.89 crores
$0.12
India
141.72 crores
$0.17
China
141.22 crores
$0.41
France
6.8 crores
$0.23
US
33 crores
$5.62
South Korea
5.16 crores
$12.55
Source: Tariff & Population Data from the year 2022 report of Statista
We can see India is one of the countries with the lowest tariff rates but are these “absurdly low” as the comment of Mr. Gopal says?
In a country with over 141 crore people and a much lower average income compared to developed countries, even low telecom tariffs can still be a big expense for many. Comparing India’s tariffs to places like the US or France doesn’t make sense because it ignores key factors like:
Market Competition
Income Levels
Economies of Scale
Service Quality and Coverage
Spectrum Costs
Government Regulationsd
These factors play a huge role in determining what tariffs should be. So, saying India’s tariffs are "absurdly low" without considering these factors is misleading.
Also, not to forget India's large population provides a huge market potential, allowing telecom companies to maintain low tariffs while still capturing significant revenue.
Saying a tariff rate is absurdly low in a country like India is pretty subjective (and a bit out of touch with the core reality)
But, these are just the views of the author. Do share with us in the comments below if do you think tariff rates in India are absurdly low as Mr Gopal, the MD & CEO of Bharti Airtel says?
Also, just an interesting fact:
Jio’s ARPU (Average Revenue Per User) stands at ₹178.8 for FY 2022 - 2023 while Airtel’s ARPU stands at ₹209 IN Q4’24 vs ₹193 in Q4’23 so Airtel is still kind of ahead of its biggest competitor but still thinks even an ARPU of ₹300 would be the lowest in the world?
.
List of sources used in this article:
Jio Infocomm Press Release on Jio’s Tariff Hike
Reliance Industries Annual Report for Year 2022 - 2023
Bharti Airtel Earnings Call for Q4, 2024
.
Thanks to @Uhtnas4444 for also sharing this news with us here: Jio Tariffs increased (Effective 3rd July)
Also read: Amazon Prime Day sale in India 2024 coming soon!