India’s leading private telecom operators, including Reliance Jio, Bharti Airtel and Vodafone Idea, are likely to increase tariffs on prepaid and postpaid mobile plans by as much as 20% next year. These expected hikes are part of periodic pricing adjustments carried out by the industry and are projected to significantly improve sector revenues. Analysts believe higher tariffs will strengthen balance sheets and support long-term sustainability, especially as companies continue to invest heavily in network expansion and next-generation services. If implemented, the increase could raise monthly telecom expenses for millions of users across urban and rural markets.
Mobile subscribers may soon feel the impact, as analysts at Morgan Stanley have projected a 16–20% rise in tariffs across 4G and 5G plans starting next year. Both prepaid and postpaid users are expected to be affected. Over the past few months, telecom providers have already discontinued low-cost recharge options and shifted bundled benefits such as OTT subscriptions to higher-priced plans. This strategy has gradually nudged customers towards costlier packs, increasing average revenue per user and improving earnings visibility for telecom companies.
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According to Morgan Stanley, the anticipated tariff revision in 2026 is likely to translate into strong growth in ARPU during the financial year 2027. The analysts believe higher pricing power, combined with a stable subscriber base, will allow operators to monetise their networks more effectively. As data consumption continues to rise and 5G adoption expands, telecom companies are expected to leverage tariff hikes to offset rising operational costs and capital expenditure. The projected increase is seen as a crucial driver of profitability in an otherwise capital-intensive industry.
Among the major players, Bharti Airtel is expected to emerge as the biggest beneficiary of any tariff increase. Analysts noted that in previous price hikes, Airtel recorded stronger gains in revenue and EBITDA compared to weaker competitors. Along with Reliance Jio and Vodafone Idea, Airtel has raised prepaid prices three times in recent years, citing the need to maintain financial health and fund 5G investments. Tariffs were sharply increased in 2019, moderately in 2021, and again last year, though further hikes are yet to be implemented.