India’s Reliance Jio increases mobile tariffs by up to 20%
By Vinu Lal
09:04, 29 November 2021
Indian mobile phone operator Reliance Jio Infocomm said it would increase prepaid tariffs by up to 20%, along the lines of similar hikes by rivals Bharti Airtel and Vodafone Idea.
Reliance Jio, a group company of business conglomerate Reliance Industries, is launching a series of new plans from 1 December that would reflect the price hike, the company said in a press statement.
“These plans will provide the best value in the industry. Upholding the RJio promise of providing the best quality service at the lowest price globally, Jio customers will continue to be the biggest beneficiaries,” the release added.
The operator would launch 12 plans and three data add-on packs, with a validity of 28 days to one year, and offer unlimited voice calling, said the release. Following the launch, RJio’s entry-level tariff would go up to INR91 ($1.21) from the earlier INR75, and the highest 336-day plan would now cost INR1559 against the earlier INR1299.
Lowest tariffs in the industry
“RJio's tariffs remain the lowest in the industry; however, the discount on some popular plans such as INR666 and INR539, 84-day plans have seen a narrower discount versus peers. The entry-level plan, however, at INR155, 28 days has seen a similar discount,” said financial services company Morgan Stanley in its note.
“We currently estimate this tariff raise will be fully reflected in the June 2022 quarter and overall estimate a 35% increase in RIL’s ARPU for FY23 (the financial year 2022-23) and another 15% increase in FY24,” it added.
ARPU or average revenue per user is a metric to gauge the financial strength of a telecom operator.
Similar hikes by rivals
Last week, rival Bharti Airtel had announced a similar hike in pre-paid mobile tariffs by up to 25% with effect from 26 November, to provide a reasonable return on capital that allows for a financially healthy business model.
Following this, Vodafone Idea, doing business as Vi, also announced plans to raise tariffs by up to 25% across all its prepaid plans, effective 25 November.
The move, the company expected, would help it to improve financials and stem subscriber losses.
Read More: Indian companies to rebound on demand revival, says Moody’s
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