Mobile Recharge Getting Costly: Airtel and Jio may increase their recharge plans. According to reports, these companies' rates could increase by 12-15 percent in the coming months.

Mobile Recharge Getting Costly: How big a blow will the common man face due to expensive recharge plans?

Mobile Recharge Getting Costly: Your pocket is about to take another hit. Buying a mobile phone has already become expensive, and now recharging it will also become more expensive . According to media reports, both Jio and Airtel are planning to increase the price of their recharge plans in the coming days. While this hasn't been confirmed by these companies yet, it's being speculated that their recharge plans could become 12-15 percent more expensive over the next 3-4 months. This simply means you'll have to spend more money on calling and data in the coming days.

Why can prices be increased?

Telecom companies have invested heavily in 5G infrastructure and spectrum acquisition. Now it's time to recoup the cost. Reports suggest that companies will increase their recharge plans to increase profits and recoup the money spent on 5G. Increasing plan prices will also increase companies' average revenue per user (ARPU). This is an important financial metric for both companies and investors. It's being reported that after network expansion and technology upgrades, companies are now under increasing pressure to generate returns. Both Jio and Airtel have already rolled out 5G connectivity to 90 percent of the country's districts. Vodafone Idea has launched its 5G service in over 100 cities. BSNL is the only company left in the country that has not yet launched 5G connectivity.

Cheap plans are a thing of the past

If we look at Jio's inception, the company started offering free plans that are unimaginable today. At its launch in September 2016, Jio offered all benefits, including calling and data, for free. However, times have changed. Over the past 10 years, recharge plan prices have steadily risen, and affordable plans seem like a thing of the past. The benefits that were once available with a 200-rupee plan until recently now cost 300-400 rupees.

Companies are quietly shutting down cheap plans

It's not as if telecom companies are planning to increase the prices of their plans all at once. They do increase their prices intermittently. Airtel, the country's second-largest telecom company, discontinued its ₹799 plan in April this year and increased its ₹859 plan to ₹899. Similarly, in November last year, it discontinued its ₹189 entry-level plan, replacing it with the cheapest ₹199 plan. Similarly, Jio also discontinued its low-cost ₹209 plan a few days ago.

When did the prices increase before this?

Telecom companies last made a major increase in recharge plans almost two years ago. In July 2024, they raised their rates by 10-25 percent. At the time, it was said that this move was being taken to cover the cost of expensive 5G networks.

Are customers happy with the services?

News of price hikes by telecom companies comes at a time when customers are unhappy with their services. Customers are constantly complaining about call drops, slow internet, and network quality. They say that mobile phone recharges have become more expensive over the past few years, but service has not improved commensurately. Even with the advent of faster connectivity, stable internet connections remain a challenge in many areas.

What will be the impact on the common man?

The increased cost of recharge plans will directly impact your pocket. After the price hike, you'll have to pay more to get the same benefits. Looking back over the past 10 years, recharge plan prices have been increasing every few years. A plan that cost Rs 200 just 2-3 years ago has now nearly doubled in price. Consequently, if companies increase rates again, a Rs 400 plan could exceed Rs 450.

Recharge plans are still the cheapest in India

It's important to note that despite recent rate increases, mobile usage in India remains among the cheapest. In March of this year, the government reported that in India, which has 1.03 billion internet users, a GB of data costs 7-10 rupees, compared to the global average of around 250 rupees.