India’s telecom users may have to pay more for mobile services, with another round of tariff hikes ready to roll out by the end of 2026.
Industry estimates suggest telecom operators could raise mobile plan prices by 12-15%, marking the second major increase after the tariff revision in July 2024.
The expected increase comes as telecom companies continue to focus on improving revenues, expanding nationwide 5G networks and recovering from heavy investments in spectrum purchases and infrastructure.
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Another Price Revision on the Cards?
According to industry experts, if implemented, this price hike would follow last year’s 11-25% increase across various plans.
The anticipated increase is expected to support higher average revenue per user (ARPU), a key financial metric closely watched by investors. Telecom operators have consistently stated that India’s mobile tariffs remain among the lowest globally despite steady improvements in network quality and data usage.
Analysts believe the next tariff revision will be measured rather than aggressive, allowing operators to improve profitability without significantly affecting subscriber growth.
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Why Operators Are Looking to Raise Tariffs
The telecom industry has entered a phase in which revenue growth is more important than subscriber additions. Companies continue to invest heavily in 5G roll-outs, network expansion and digital services, while also managing rising operating costs.
Market experts expect operators to prioritise premium users by encouraging them to migrate to higher-value plans. The ongoing shift from 4G to 5G subscribers is also expected to support better earnings over the coming quarters.
Despite affordability-related concerns, experts project that demand for mobile connectivity will remain resilient, as smartphones, digital payments, streaming and online services have become part of everyday life.
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What does it mean for Consumers and the Industry?
A fresh tariff increase would mean higher monthly mobile bills for millions of subscribers using prepaid and postpaid plans. However, analysts expect the impact on customer churn to remain limited, as previous tariff revisions resulted in only modest subscriber losses.
Stronger pricing might improve cash flow and support investments in network capacity & digital infrastructure for the telecom sector. If operators move ahead with another tariff revision, the focus is likely to shift from subscriber numbers to customer spending.
The coming months will determine whether India’s telecom market enters a new phase centred on sustainable revenue growth rather than low-cost competition.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
