Jio, Airtel, Vi likely to INCREASE prepaid, postpaid tariffs by…; Here’s all you need to know
Indian telecom giants such as Reliance Jio, Bharti Airtel and Vodafone Idea are expected to increase prepaid and postpaid tariffs by up to 20% in 2026.
India’s major private telecom operators, including Reliance Jio, Bharti Airtel and Vodafone Idea, are set to increase their prepaid and postpaid tariffs by up to 20% in 2026. This potential tariff increase, driven by the trend of periodic price adjustments, is expected to significantly increase the revenue of the telecom industry.
Trend of Tariff Increases and Sector Forecasts
Telcos in India have historically increased tariffs every two years, with the last increase occurring in July 2024. Based on this model, industry analysts predict that the next round of tariff increases could occur in 2026. According to Morgan Stanley, the expected increase could range from 16% to 20%, covering both 4G and 5G plans. This regulation aims to further strengthen the average revenue per user (ARPU) for telecom operators by applying to both prepaid and postpaid services.
5G Access and Data Plans Will Likely Be More Expensive
Analysts predict that the inclusion of 5G services, on top of the normal price increase, could lead to higher fees. Telecom companies are bundling 5G services with higher-priced data plans, and this trend may continue. These plans, which generally offer 2 GB of data per day, may experience price increases, which may cause access to 5G network services to become more expensive for users.
Morgan Stanley’s forecast suggests that these tariff increases could significantly increase ARPU growth for telcos, especially in fiscal year 2027 (F27). With the rollout of 5G and additional data offerings, telecom operators will increase both their revenue and profits.
Bharti Airtel’s Projected ARPU Growth
One of the key beneficiaries of this tariff increase will be Bharti Airtel. The telecom giant currently has an ARPU of Rs 256 crore at the end of Q2 FY26. A 20% tariff hike will strengthen Airtel’s financial position by increasing its ARPU to over Rs 300 crore. Morgan Stanley predicts that Airtel could even cross Rs 400 crore in ARPU in the next five years, assuming no additional tariff increases after 2026.
Airtel’s ability to increase ARPU without losing customers positions it as a key player in the Indian telecom market, especially in light of the growing demand for 5G services.
Short-Term Subscriber Loss Likely But Recovery Is Expected
Although the tariff increase is likely to lead to subscriber loss in the short term, especially for Vodafone Idea, which is losing customers, this impact is expected to be temporary. Historically, telecom operators have seen a reduction in their subscriber base immediately following tariff increases; consolidation occurred as customers adapted to new plans. However, this decline is usually followed by a recovery within two to three quarters as customer loyalty and usage patterns stabilize.
Impact on the Telecom Industry
The upcoming tariff increase is expected to significantly benefit the telecom sector and help companies improve their financial performance. While Bharti Airtel and Reliance Jio continue to strengthen their positions, Vodafone Idea may face challenges in maintaining its subscriber base. However, the overall impact of higher tariffs is expected to have a positive impact on the sector’s revenue growth, especially in the post-2026 period.
Conclusion: A Support for the Telecom Industry in 2026 and Beyond
As telecom companies prepare for a fresh price hike in 2026, the Indian telecom industry is expected to experience a surge in ARPU and overall revenues. While the hikes may lead to some short-term subscriber losses, the long-term effects of increased tariffs are likely to be beneficial for telecom giants like Airtel and Jio, especially with the rollout of 5G.
