Telecom Diary: As 5G auction nears, another mobile tariff hike on cards

Mobile users need to brace up for another round of mobile tariff hike in the second half of this year as the industry looks to improve its average revenue per user (ARPU) to bring in more financial stability.

The Indian telecom market is ready to take another hike in its stride as telecom tariffs in India remain amongst the lowest globally, according to analysts.

After two rounds of tariff revisions, a significant pricing power in the sector has returned and it is expected that the top three telcos – Jio, Airtel and Vodafone Idea – collectively will add around 35-40 million customers by end-FY23, mainly from the rural markets. Rural mobile tele-density is under 58% compared to over 130% in urban areas.