Mobile Recharge Prices Expected To Rise After Lok Sabha Elections

The expected hike is estimated to be between 15 to 17 percent.

Written By Zee Media Bureau|Edited By: Pawan Rai|Last Updated: Apr 13, 2024, 09:53 AM IST|Source: Bureau

Mobile Recharge Prices Expected To Rise After Lok Sabha Elections

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New Delhi: After the Lok Sabha elections, mobile users across the country should brace themselves for higher recharge costs as mobile service providers are gearing up to hike tariffs. This move implies that recharging your mobile phones will become more expensive post-elections, with companies having already laid out their plans for the increase.

Tariff Hike Estimates

According to a report by Antique Stock Broking, tariffs in the telecom industry are anticipated to surge by 15 to 17 percent following the general elections. The elections are scheduled to occur in seven phases from April 19 to June 1, with vote counting slated for June 4. (Also Read: Attention: HDFC Bank's Special Fixed Deposit Scheme Ending On THIS Date)

Long-Awaited Hike

The telecom industry has long awaited this tariff hike, and it is widely anticipated that the increase will occur post-election. The report suggests that Bharti Airtel stands to benefit the most from this hike. (Also Read: Swiggy Delivery Partner Caught Stealing Shoes in Viral Video, Company Reacts: Watch)

The expected hike is estimated to be between 15 to 17 percent, marking the first increase in nearly three years since the last hike of around 20 percent in December 2021.

Impact On Prices

For instance, a Rs 300 recharge is predicted to cost Rs 351 after the hike, reflecting the 17 percent increase. The report also highlights the average profit per user (ARPU) of Bharti Airtel, India's second-largest telecom company, which currently stands at Rs 208 for the financial year 2026-27. There's a possibility it may rise to Rs 286.

Market Dynamics

The report also sheds light on the market dynamics, stating, “We expect Bharti Airtel’s customer base to grow at about two percent per year, while the industry grows at one percent per year."

It also notes the market share fluctuations among telecom giants, indicating a decline in Vodafone Idea’s market share from 37.2 percent in September 2018 to 19.3 percent in December 2023.

Conversely, Bharti’s market share has increased from 29.4 percent to 33 percent during this period, while Jio’s market share has surged from 21.6 percent to 39.7 percent.