Key Points
- Mobile and internet bills in India are expected to rise by 10–12% by the end of 2025.
- The hike will mainly target mid- and premium plan users, not basic entry-level packs.
- May 2025 saw a record surge in active subscribers, with 7.4 million new users added, reaching a 29-month high.
- Reliance Jio and Bharti Airtel led subscriber growth, while Vodafone Idea and BSNL continued to lose users.
- Experts warn of possible customer churn if hikes are not carefully targeted, as a previous 11–23% increase in July 2024 led to a loss of over 21 million users.
- Telecom companies may also reduce data allowances in base plans, pushing users to buy additional data packs.
New Delhi: India’s rapid digital transformation is set to become costlier for millions of mobile and internet users. By the end of 2025, major telecom operators including Reliance Jio, Bharti Airtel, and Vodafone Idea are preparing to raise mobile and internet tariffs by 10–12%. This increase is expected to affect especially those on mid- and high-value plans, as companies shift away from flat-rate hikes to more segmented, tiered pricing.
Why Are Tariffs Going Up?
- Record Subscriber Growth: May 2025 marked the fifth consecutive month of net user additions, with 7.4 million new active subscribers joining, bringing the total to nearly 1.08 billion its highest in 29 months.
- 5G Rollout and Investment: The need to fund 5G infrastructure and spectrum costs is driving telecoms to seek higher average revenue per user (ARPU).
- Previous Hikes and Recovery: After a steep 11–23% hike in July 2024, the sector lost 21 million users by November. However, the recent surge in new users has restored confidence among operators that the market can absorb another increase.
How Will the Hike Affect Users?
Tiered Pricing and Reduced Data
Unlike previous hikes that hit all users equally, the upcoming increase will likely focus on:
- Mid- and premium plan users: These segments will see the sharpest price increases, while basic entry-level packs may remain unchanged.
- Reduced data in base plans: Companies may cut included data in basic plans, nudging customers to buy more top-up data packs or upgrade to higher plans.
- Variable pricing: New plans may offer different rates based on data speed, usage volume, or time of day, giving customers more choices but potentially higher costs if their usage patterns change.
Risk of Customer Churn
Experts caution that another round of steep hikes could lead to customer attrition, especially if low-income or price-sensitive users are affected. The industry is expected to adopt a more nuanced, tiered approach to avoid mass exits and maintain subscriber growth.
Market Leaders: Jio and Airtel Dominate Growth
- Reliance Jio added 5.5 million active users in May 2025, boosting its active user share to 53%.
- Bharti Airtel added 1.3 million active users, now holding 36% of the active subscriber base.
- Vodafone Idea and BSNL continued to lose users, highlighting consolidation in the sector.
Table: Telecom Subscriber Growth and Tariff Hike Impact (May–December 2025)
| Operator | New Active Users (May 2025) | Market Share (%) | Tariff Hike Focus | Previous Hike (July 2024) |
|---|---|---|---|---|
| Reliance Jio | 5.5 million | 53 | Mid & premium plans | 11–23% (base plans) |
| Bharti Airtel | 1.3 million | 36 | Mid & premium plans | 11–23% (base plans) |
| Vodafone Idea | Loss of users | ~7 | Not specified | 11–23% (base plans) |
| BSNL | Loss of users | ~3 | Not specified | 11–23% (base plans) |
What Should Consumers Do?
- Monitor plan changes: Stay alert for new pricing announcements and review your plan’s data allowance.
- Compare options: Consider switching to plans that better fit your usage or explore competitive offers from other operators.
- Prepare for higher costs: Budget for a potential 10–12% increase if you use mid- or premium plans, or if your data needs are high.
India’s telecom sector is on the verge of another significant price hike, driven by record subscriber growth and the ongoing 5G rollout. While the increase will mostly impact mid- and high-value users, all consumers should stay informed about upcoming changes to avoid bill shocks and make the most of their mobile and internet services.
