Telecom Recharge Plan Price Increase Expected by End of 2025

India’s leading telecom operators – Jio, Airtel and Vi – are poised to raise prepaid recharge plan prices by 10% to 12% by the end of 2025. The planned hike follows the industry’s push to increase average revenue per user (ARPU) and coincides with the phasing out of several lower-priced data plans.

What’s Driving the Price Increase

ARPU Growth Signals

• According to the latest data from the Telecom Regulatory Authority of India (TRAI), the monthly ARPU for prepaid wireless services rose from ₹146.37 in 2023-24 to ₹173.84 in 2024-25—a year-on-year increase of approximately 18%.
• Analysts at Crisil Ratings estimate that ARPU may increase further by ₹20-25 to hit the ₹225-230 mark, driven by a shift toward premium data plans and 5G adoption.

Removal of Entry-Level Plans

• Both Jio and Airtel have already discontinued their 1 GB/day value plans, signalling a move away from ultra-low-cost offerings. For instance, Jio’s base data plan now starts at ₹299 for 1.5 GB/day.
• Vodafone Idea (Vi) is expected to follow this trajectory with similar price adjustments.

Industry Forecasts

• A report published on 7 July 2025 by Jefferies projected that mobile recharge plans across India will see a 10-12% price increase by year-end, reflecting operators’ efforts to monetise rising data demand.
• Further, analysis by Communications Today suggests targeted hikes on select plan tiers may boost ARPU by ~2% with a 20% price rise for 7-8% of subscribers.

Price Increase Implications

For Consumers

• The increase could mean higher monthly expenses for users who recharge frequently or opt for mid-tier plans.
• Budget-conscious subscribers may seek alternatives or downgrade data usage.
• The removal of lower-cost 1 GB/day plans leaves fewer entry-level options.

For Telecom Operators

• A higher ARPU strengthens financials, especially as 5G roll-out and infrastructure investment accelerate.
• Operators may leverage premiumisation of services (higher data buckets, bundled OTT subscriptions) to justify price increases.
• Competitive differentiation may shift toward service quality rather than solely price.

For Market Dynamics

• While Jio and Airtel spearhead the shift, Bharat Sanchar Nigam Limited (BSNL) currently retains more affordable plan tiers, potentially attracting cost-sensitive users.
• The consolidation of the telecom sector and an increasingly premium subscriber base may lead to fewer ultra-low-cost plan offerings.

What to Watch

• The exact timing of new tariffs across operator circles – price changes may vary by region.
• Introduction of benchmarked new plan structures (data buckets, validity, bundled services) as older plans are removed.
• Consumer response and churn levels, especially among prepaid users who may downgrade or switch providers.
• Monitoring of ARPU trends in Q1 FY26 and beyond to validate the impact of tariff increases.

With the focus keyphrase telecom recharge plan price increase firmly in view, the evidence points toward a 10-12% tariff rise in the near term for major Indian telecom operators. The strategy reflects a shift from volume to value, as networks mature and data consumption patterns evolve. Consumers and stakeholders alike should prepare for higher plan costs and fewer ultra-low-price options.

Tags: telecom recharge plan price increase, Jio Airtel Vi price hike, mobile tariff India 2025, ARPU growth Indian telecom, prepaid plan cost rise, telecom industry India