Telecom Tariffs May Rise Again in 2025 as Subscriber Growth Surges, Says Report

Highlights

• Indian telecom companies may raise mobile tariffs by 10–12% by the end of 2025, especially targeting mid- and high-spending users.
• In May 2025, India added 7.4 million active users with Jio gaining 5.5 million and Airtel 1.3 million, pushing the total base to 1.08 billion.
• Future plans may shift to tiered pricing based on data usage, speed, time-of-day and user behaviour, aiming to protect low-end users while boosting revenue.

India’s telecom companies could raise mobile tariffs by 10–12% by the end of 2025, especially for mid- and high-spending users. According to a report from ET Telecom, this comes as mobile networks continue to see steady subscriber growth. Here’s what we know so far.

Telecom Subscriber Growth Hits New High

In May 2025, India added 7.4 million active users, marking the fifth month in a row of net gains and the biggest monthly increase in over two years. The total active user base now stands close to 1.08 billion.

Reliance Jio added 5.5 million users, boosting its market share to 53%

Airtel gained 1.3 million users, bringing its share to 36%

Analysts say this growth shows users have adjusted to the previous tariff hike in July 2024, which raised base plans by 11–23%. The recent surge is also driven by a comeback in secondary SIM usage and growing acceptance of higher prices. However, experts warn that another hike could further test user retention.

Company Might Opt for Tiered Pricing

Instead of blanket price increases, the next round of tariff changes could bring tiered pricing that offers different plans based on different parameters. These parameters could be –

• Data usage volume
• Network speeds
• Time-of-day usage
• User behaviour (especially low-data users)

This strategy aims to protect low-end users from more price shocks while increasing revenue from mid- and high-tier users who consume more data.

Indian Telecom Industry – What To Expect?

Industry watchers believe Jio’s continued growth and Vodafone Idea’s subscriber losses could push Jio and Airtel to increase their market share further and possibly hike tariffs selectively.

Brokerage firm BNP Paribas expects the telecom sector to maintain double-digit revenue growth from FY25 to FY27, driven by both price hikes and new bundled plans.

In a recent earnings call, Airtel MD Gopal Vittal said the old “one-size-fits-all” pricing model no longer works. Vittal reportedly stressed the need for more customised plans to suit different user needs.

While there’s no confirmed timeline, analysts say more pricing changes are likely to roll out in the coming months.

FAQs

Q1. Why are telecom tariffs expected to rise again in 2025?

Answer. India’s telecom companies could raise mobile tariffs by 10–12% by the end of 2025, especially for mid- and high-spending user, as mobile networks continue to see steady subscriber growth.

Q2. What is tiered pricing and how might it affect users?

Answer, Instead of blanket price increases, the next round of tariff changes could bring tiered pricing… based on data usage volume, network speeds, time-of-day usage, and user behaviour (especially low-data users).

Q3. How much did the telecom subscriber base grow in May 2025?

Answer. In May 2025, India added 7.4 million active users, marking the fifth month in a row of net gains and the biggest monthly increase in over two years.

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