Reliance Jio hikes prepaid tariffs by 20% effective December

 Following Bharti Airtel and Vodafone Idea, India's largest wireless carrier Reliance Jio announced on Sunday, November 28, a 21% increase in prepaid rates from December onwards. Despite the increase in tariffs, Jio maintains package prices lower than Airtel and Vodafone Idea, which are expected to continue price competition in the industry.

The company still maintains the lowest rate for its Rs 91 28-day validity plan for JioPhone users, the lowest among any residential telecom operator. Bharti Airtel and Vodafone Idea increased their initial 28-day plan to 99 rupees. The rate increase includes JioPhone plans, unlimited plans, and data upgrades and ranges from 19.6% to 21.3%. “In line with its commitment to further empower a sustainable telecommunications industry where every Indian has a true digital life, Gio today announced its new unlimited plan. This plan will offer the best value in the industry,” said Reliance Jio.

The new unlimited fares will start on December 1, 2021 and can be selected from existing contact points and channels. The company announced tariff increases on 15 plans, including one for JioPhone users, 11 in the unlimited category, and three in the data supplement category.

In the unlimited plan category, Jio raised the price of its cheapest 28-day plan from 129 rupees to 155 rupees. The popular plan for the unlimited category with 1.5 GB daily data usage, which is valid for 84 days, increased by about 20% from the current 555 rupees to 666 rupees.

The company announced that its annual plan for the unlimited category with 2GB daily data usage at 4G speed will be Rs 2,879 instead of the current Rs 2,399.

Airtel and Vodafone Idea announced last week that they would be increasing their prepaid rates by up to 25% to improve their financial situation.

Some market analysts say a final impact assessment can only be made if Jio opens his cards when the price rises.

Airtel and VIL claim the average consumer's income should increase in the range of Rs 200-300 per month to support the business, but are unable to raise rates due to competitive pressures.

Jio's ARPU for the second quarter ending 30 September 2021 was 143.6 rupees, while Bharti Airtel and VIL were 153 rupees and 109 rupees respectively for the same quarter.