In Short:
Telecom tariffs in India are expected to increase by 20-25%, making it more expensive to keep a SIM active. Airtel and Jio already have a minimum recharge of Rs 150 for active validity. Despite the hike, analysts don’t expect major SIM consolidation as users tend to stick with their current operators. Jio is expected to remain the most affordable option, while Airtel and Vi will focus on premium tariffs.
Tariff Hikes on the Horizon
Tariff hikes are on the horizon for the telecom industry in India after a long gap since the last increase in Dec 2021. Industry experts anticipate a hike of 20-25%. This hike will result in a more expensive affair to keep your SIM active. Currently, Airtel and Jio have set a minimum recharge for active validity at around Rs 150, which may be costly for many low-earning Indians. With an expected hike in the next two to three months, the price may increase to Rs 180-200 for users to maintain their SIM card.
Potential Impact on Second SIM Usage
Will this lead to people deactivating their second SIMs? Analysts do not foresee any significant SIM consolidation after the upcoming tariff hike. Unlike the previous hike that resulted in the loss of subscribers for Airtel and Vi, it is unlikely to happen this time. Most high-paying users are with Jio and Airtel, while Vi caters to a large number of 2G and 4G users. Limited alternatives may prevent users from switching operators.
User Loyalty to Telecom Operators
Users are familiar with their telcos’ tariff strategies and are likely to remain loyal regardless of the hike amount. Jio is expected to offer the most affordable rates, while Airtel and Vi will focus on premium tariffs.
Impact on Second SIM Usage
A marginal hike may not deter users from using a second SIM, especially after a gap of around 3 years. Users are anticipated to accept the hike as telecom operators strive to maintain healthy cash flows amidst significant investments.
