Vodafone Idea Raises Tariffs Amid Industry Shift

According to Reuters, Vodafone Idea has joined Reliance Jio and Bharti Airtel in increasing tariffs for the first time in three years, aiming to recover investments in 5G technology.

Tariff Increases in Vodafone Idea:

Vodafone Idea announced tariff hikes ranging from 10% to 23% across seventeen prepaid and post-paid plans, effective July 4.

• Entry-Level Plan: Increased by about 11% to ₹199 from ₹179.
• 84-Day Validity Plan (1.5 GB/day): Raised to ₹859 from ₹719.
• Annual Unlimited Plan: Increased by approximately 21% to ₹3,499 from ₹2,899.
• 365 Validity Plan (24 GB data): Remains unchanged at ₹1,799.

Previous Tariff Strategies of Vodafone Idea:

India, the world’s second-largest smartphone market, has historically had some of the lowest tariffs globally. Jio’s aggressive pricing strategies forced competitors to lower prices to remain competitive.

This recent hike marks the first tariff increase since 2021, following heavy investments in infrastructure and spectrum acquisition, including 5G airwaves in 2022.

Impact on Average Revenue per User (ARPU)

Jio’s third tariff increase in five years is expected to boost its Average Revenue per User (ARPU) by approximately 17% over the next year, according to a Morgan Stanley report.

In comparison, Jio’s ARPU was ₹182 in the January-March quarter, while Bharti Airtel reported ₹209, reflecting its focus on higher-paying subscribers. With the lowest ARPU at ₹146, Vodafone Idea aims to enhance revenue amid industry dynamics.

This move by Vodafone Idea reflects broader shifts in the Indian telecom sector towards sustainable profitability and investment in next-generation technologies like 5G.

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