Broadband prices in India could be increased following recent prepaid tariff hike

Broadband Internet plans in India from Jio, Airtel, and other companies are likely to see a tariff hike by a minimum of 15 per cent.

Highlights
  • Broadband prices could see a minimum of 15 percent price hike.
  • This comes after telecom companies hiked tariffs on their prepaid plans.
  • Jio and Airtel could soon announce new broadband recharge plans in India.

New reports suggest a tariff correction of broadband plans following the recent price hike of prepaid recharge plans. Internet services in India have sustained at significantly low prices for the past few years, but that is slowly changing. Telecom service providers including Jio, Airtel, and Vi have recently revised their prepaid plans and are now costlier than before. Soon, Broadband prices will see a revision and an upward trajectory to the tariffs is expected. This comes following the recent telecom prepaid recharge plans’ price revision, which has seen up to a 25 per cent hike citing reasons that majorly encompass the sustenance of their current business structure.

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Internet broadband plans could get costlier soon

Broadband prices are soon expected to see a rise and companies are likely to cite sustenance of business as the reason for this change. Telecom companies have recently revised the tariffs on their plan sheet by up to 25 percent. Broadband companies, which include Airtel and Jio, are likely to follow suit, and prices are expected to climb by 15-20 percent. This comes in at a time when telecom service providers and broadband companies have been posting resistance towards the ultra-low charges that the Indian market has experienced for some time now. Difficulties in providing Internet services at such low prices while still keeping their business models viable have publicly been under contention. 

A 15-20 per cent rise is necessary to make the current services viable.”

“Like telecom Internet services, ARPU (average revenue per customer) for broadband is also required to be corrected as service providers are bleeding in the current war of customer acquisition. A 15-20 per cent rise is necessary to make the current services viable,” said Tapabrata Mukherjee, the co-founder of Meghbela Broadband, told PTI

Tapabrata Mukherjee also mentioned that the change is first to be reflected by an update to the broadband plans offered by Airtel and Jio which will consequently allow smaller companies operating at local and regional levels to increase their prices. This is necessary to protect smaller companies from losing out on existing customers. Service providers now have to resort to providing subscriptions to OTT platforms to make their plans more lucrative.