India’s telecom sector is gearing up for another significant mobile tariff hike by the end of 2025, with industry analysts predicting an increase of 10 to 20 percent in prepaid and postpaid plans. This upcoming price revision, expected around November-December 2025, marks the fourth major tariff increase in six years and reflects ongoing efforts by telecom companies to repair rates and improve revenue amid rising costs and expanding 5G infrastructure.
Leading telecom operators such as Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) have been under growing financial pressure due to heavy investments in network expansion, spectrum acquisition, and regulatory fees. Vodafone Idea, in particular, recently secured government approval to convert ₹36,950 crore of spectrum dues into equity, increasing the government’s stake from 22.6% to nearly 49%. This move underscores the sector’s need for capital infusion and financial stability.
According to a Bernstein research report, the tariff hike is part of a broader industry-wide “rate repair” strategy to enhance revenue visibility and profitability. Analysts expect tariffs to rise steadily over the medium term, potentially reaching an average revenue per user (ARPU) of ₹300 by fiscal year 2027. The hike is anticipated to boost revenue growth for major players, with mid-to-high teen percentage increases forecasted between 2025 and 2027.
In the October-December 2024 quarter, Airtel’s ARPU rose by 5.2% sequentially to ₹245, driven by previous tariff hikes, upgrades from feature phones to smartphones, and increased data monetization. Jio’s ARPU also improved to ₹203, while Vi’s stood at ₹163. The expansion of 5G coverage and services is expected to further support ARPU growth as operators monetize advanced data offerings.
Vodafone Idea CEO Akshaya Moondra emphasized the need for more frequent tariff hikes in India, suggesting a nine-month interval between increases due to the market’s unique dynamics. The July 2024 price revision, which saw hikes up to 25%, already resulted in improved earnings and ARPU for all major telcos.
Consumers should brace for higher mobile plan costs later this year, with estimates suggesting a 10–20% increase on average tariffs. While this may affect affordability, the hike is seen as necessary to sustain network quality, accelerate 5G rollout, and support new technologies like IoT and enterprise services.