Reliance Jio has become the third telecom operator to announce this week that it is increasing its tariffs. With its Sunday announcement, Jio’s prepaid plans will cost 20 per cent higher – the cheapest plan is now priced at ₹91 per month, while the most expensive plan will be available at ₹2,879.
This week saw back-to-back announcements of price increases by the three majors telcos, Airtel, Vodafone Idea and Jio. Experts have long said that the cash-strapped telecom industry is in desperate need of capital infusion, and while India has enjoyed some of the cheapest tariffs in the world, consumers need to pay more for telcos to get the necessary ARPUs to sustain their business.
True to their prediction, following Diwali, telcos announced an overall 20 per cent increase in tariffs.
Jio, which has carved out its dominant market share by keeping its tariffs cheaper than its competitors, will still be priced nearly 10 per cent lower than Airtel and Vodafone.