Mobile Recharge Price Hike: Smartphone users may soon get another big shock. According to research reports, telecom companies may soon increase the prices of their recharge plans.
Telecom Tariff Hike News: If you are also troubled by the expensive prices of mobile recharge, then the coming days may prove to be more heavy on your pocket. Crores of mobile users of the country are likely to face another big blow from the telecom companies soon. According to the latest report of brokerage firm Centrum Institutional Research, mobile recharge plans may become more expensive by 12 to 15 percent within the next 3 to 4 months. The report believes that due to the presence of select companies in the market, it has become easier for companies to increase prices for customers.
What does the report say?
According to this preview report of Centrum on the telecom sector, the Indian mobile market is now limited to the structure of ‘3+1’ players Jio, Airtel, VI and BSNL. After this consolidation of the market, the environment for increasing earnings for companies has become much better. Taking advantage of this favorable environment, private telecom companies are planning to increase their tariff plans by 12 to 15% in the next few months. This simply means that your monthly and annual recharge bill may increase significantly.
Companies busy in increasing earnings, effect of 5G network visible
The report estimates that the average earnings per user (ARPU) of private telecom operators may see an increase of 1 to 1.5 percent in the June quarter of the current financial year. There are mainly three big reasons behind this. First, there is continuous migration of 2G users to 4G and 5G networks in the country. Second, the continuous increase in the number of postpaid customers and third, the increase in the number of days in the current quarter.
Effect of high data usage also
Along with this, due to the increasing coverage of 4G and 5G networks in the country, data usage by customers is also increasing rapidly. Reliance Jio and Bharti Airtel have extended their 5G service to more than 90% of the districts in the country and now their entire focus is on connecting more and more 5G devices on the network. Both the companies are also experiencing tremendous growth in 5G fixed wireless access (FWA) and fixed broadband segments.
Jio-Airtel’s dominance will increase, pressure on VI will remain
Big changes are also expected in terms of market share. Centrum Research believes that Reliance Jio and Bharti Airtel will continue to increase their subscriber base, while the challenge for Vodafone-Idea (Vi) is not over yet. According to the report, Reliance Jio can add about 70 lakh new customers every quarter (QoQ). Bharti Airtel can add about 50 lakh new users every quarter. Whereas Vodafone-Idea seems to be lagging far behind in this race and is able to add only around 2 lakh new customers per quarter. However, Vodafone-Idea is also rapidly expanding its 5G network and the company’s 5G network has so far reached about 100 cities.
Also a relief news for Vi
Amidst this entire scenario, a good news has come for Vodafone-Idea that there has been a slight improvement in its financial condition. According to the report, based on the present value of future AGR payment liabilities, the company’s total AGR Dues liability has now reduced significantly to Rs 25,000 crore. This will definitely provide some financial relief to the company for its network expansion.