India's Telecom Industry Braces for Significant Tariff Hikes

India’s telecom users may soon feel the pinch as the industry eyes a 10–12% hike in tariffs by the end of 2025. This increase is expected to particularly affect mid- and high-paying consumers, marking another adjustment following the July 2024 hike.

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Surge in Subscribers Fuels Tariff Revision Plans

The recent surge in active subscribers, including a record 7.4 million additions in May, has encouraged operators to consider revising rates. The active subscriber base jumped to nearly 1.08 billion, the highest in 29 months, with Reliance Jio leading the gain.

Targeted Tariff Hikes on the Horizon

Instead of across-the-board increases, operators may adopt a tiered pricing model, targeting middle and upper-band users more aggressively. This strategy aims to minimize subscriber churn while maximizing revenue from high-data consumers.

Future Growth and Pricing Strategies

With 5G expansion and adoption on the rise, the sector’s revenue growth is projected to remain in double digits during FY25–27. Industry leaders are calling for a pricing system overhaul to better align with consumer usage and market realities.