5G’s Fast Lane Comes with a Toll: Mobile Tariffs Set to Climb in India

India's telecom sector is gearing up for yet another hike in the price of mobile plans, with prices expected to rise by 10-12% by December 2025. The recent development comes after a massive tariff hike last July and is prompted by the rapid rise in 5G services and a rise in active subscribers.

 

Key Points

Second Big Hike in 2025: The July hike (11-23% hike) will be followed by one additional 10-12% tariff hike towards the end of the year by telcos such as Jio, Airtel, and Vodafone Idea, mainly for mid- and high-value plans.

 

5G Push Drives Pricing: Rapid 5G network deployment and rising operating costs are the main drivers. Operators wish to recover their massive 5G investments and boost Average Revenue Per User (ARPU).

 

Tiered Pricing & Data Caps: Lower data allowances can be bundled in new plans, so that heavier users need to purchase additional packs. Further "tiered" pricing based on usage and speed is anticipated, especially for 5G.

 

Subscriber Boom: May 2025 saw a new high of 7.4 million new active subscribers, increasing the tally to nearly 1.08 billion. Jio gained 5.5 million, and Airtel gained 1.3 million.

 

Market Impact: The growth is expected to add as much as ₹47,500 crore to industry revenues annually. Analysts expect ARPU to rise to ₹300 in 2027 with higher penetration by bundled and premium plans.

 

Consumer Advice: Users are urged to compare plans, consider long-term recharges before the hike, and monitor data usage to avoid extra charges.

 

Not Uniform Across Plans: Basic plans will change very little, whereas mid- and high-end plans will be affected the most. Vodafone Idea, itself lagging behind in 5G roll-out, is also increasing tariffs to survive.

 

What's Next?

 

With the development of telecom in India towards high-speed 5G and data-based services, customers can expect enhanced connectivity and new features at a higher cost. 

 

Source: Times of India, NewsBytes, KalingaTV, Business Today, Economic Times.