Post tariff hikes: Users could spend Rs 47,500 crore more, trade up data plans
The recent hefty tariff hikes by major Indian telecom companies, Reliance Jio and Bharti Airtel, are expected to significantly increase consumer spending on telecom services, potentially adding Rs 47,500 crore annually. These increases, aimed at boosting 5G monetisation, raise the cost of entry-level 5G plans by up to 71%. Analysts anticipate a 15-17% rise in average revenue per user (ARPU) for Jio and Airtel, driven by up-trading to higher data allowance plans. Despite risks of subscriber churn, the hikes are seen as pivotal for enhancing profitability and investment returns in the telecom sector.
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