Bharti Airtel Eyes Tariff Hike while Reliance Jio Focuses on Data Usage Initiatives
As the telecom industry in India braces for potential tariff hikes, two major players, Sunil Mittal’s Bharti Airtel and Mukesh Ambani’s Reliance Jio, are charting different courses to navigate this landscape.
Mukesh Ambani, the wealthiest individual in India with a net worth of Rs 952,845 crore, leads Reliance Industries, the most valuable company in India with a market capitalization of Rs 19,69,000 crore. Ambani’s conglomerate has made significant strides across various sectors, with Reliance Jio emerging as the largest telecom operator in India.
With mobile data consumption soaring, both Reliance Jio and Bharti Airtel are exploring strategies to maximize revenue from consumers. While Bharti Airtel is reportedly considering increasing headline tariffs, Reliance Jio may opt for a different approach.
A report by Mint suggests that instead of raising tariffs, Reliance Jio is focusing on initiatives to encourage higher data usage among consumers, potentially leading to increased adoption of higher-tier data packages. This strategy aims to bolster the average revenue per user (ARPU) for Reliance Jio.
Meanwhile, if Bharti Airtel proceeds with tariff hikes, it could further widen the gap between the two telecom giants, as Reliance Jio currently positions itself as a more affordable option in the market. The upcoming Indian Premier League (IPL) 2024 season is expected to drive significant data consumption, potentially incentivizing users to opt for higher-tier data packages.
A report by Bernstein forecasts that tariff hikes may be announced post-elections, likely between July to October, with expectations of a robust 15% increase. Bharti Airtel is anticipated to lead the tariff hike, stabilizing ARPU levels to Rs 260 or more by fiscal year 2026.
As the telecom industry undergoes transformation amidst evolving consumer demands and regulatory dynamics, the strategic decisions of Bharti Airtel and Reliance Jio are poised to shape the future landscape of the sector in India.
