Airtel and Vodafone-Idea set to increase tariff plans from December 1 across India


Industry experts estimate at least 35-40% price hike

Vodafone-Idea and Bharti Airtel have decided to increase tariff prices in India from December 1. This move comes as both the telecom operators registered record quarterly losses to the tune of Rs 50,921 crore and Rs 28,450 crore, respectively. Now, both the telcos are under enormous pressure, and with the surmounting dues, it seems they have played their final card.

According to a report, industry experts estimate at least 35-40% price hike in pre-paid and post-paid tariff plans of Vodafone-Idea and Airtel. Till now, both the companies have been competing aggressively with Reliance Jio, which is well on its way to achieve 500 million subscribers.

Vodafone-Idea & Airtel price hike could lead to subscribers jumping ship

Neither Airtel nor Vodafone-Idea have revealed their new tariff plans yet. However, we expect more details to come in as we reach the end of November 2019. That said, both the companies raised prices of their post-paid plans back in July, with Airtel discontinuing some of its existing tariff plans.

Notably, the most affordable tariff plans start at Rs 23 and Rs 24, respectively, for Airtel and Vodafone-Idea.

Vodafone Idea released a statement saying that “To ensure that its customers continue to enjoy world-class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective December 1, 2019.”

While Airtel said that, “The telecom sector is highly capital intensive with fast-changing technology cycles that require continuing investments. It is, therefore, essential that the industry remains viable to support the vision of Digital India. Accordingly, Airtel will appropriately increase price offerings in the month beginning December.”

With the new plans, both Airtel and Vodafone could see a loss in subscriber count as Jio continues with its aggressively priced tariff plans and offers. Since Jio entered the Indian telecom space, Airtel and Vodafone-Idea (then Vodafone) reduced the prices of their calling and data plans to better match the tariffs of Jio. However, the companies are now facing a severe financial crisis with increased losses and license fee dues.

The introduction of revised tariff plans is an attempt by Bharti Airtel and Vodafone-Idea to sustain in the Indian telecom space. It also opens up the exit doors for subscribers who could make a move towards Reliance Jio.

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