Reliance Jio and Airtel, the two largest telecom operators in India, have initiated what analysts expect to be an industrywide increase in tariffs in the world's second largest wireless market, raising some of its plans by about 25%.
Jio's revised pricing structure, effective July 3, sees its entry-level Rs 155 ($1.87) plan, offering 2GB of data and unlimited calls, increase to Rs 189. Similarly, a plan providing 1GB of daily data usage will rise from Rs 209 to Rs 249. Jio is raising prices of its two-month, three-month, annual, postpaid and data add-on plans as well.
Airtel announced a 10-20% tariff hikes across its popular plans on Friday and said it welcomed Jio's move. Airtel said it continues to believe that average revenue per user in India needs to be upwards of Rs 300 ($3.6) to "enable a financially healthy business model for Telcos in India." (Airtel's price hike will also go into effect from July 3. Its current ARPU is about Rs 210.)
Jio, a subsidiary of the Indian conglomerate Reliance Industries, disrupted India's wireless market last decade with its extremely affordable cellular plans. The move compelled established competitors to significantly reduce their own prices.
Akash Ambani, chairman of Reliance Jio, said in a statement Thursday that the move is a "step in the direction of furthering industry innovation and driving sustainable growth through investments in 5G and AI technology."
It's worth remembering that even after the price hikes, Jio's offering is among the world's most affordable. Additionally, Jio said today it will offer customers "unlimited 5G data" if they subscribe to any plan that previously offered usage of 2GB per day or more.
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