India’s Largest Telecom Operator, Reliance Jio Announces Tariff Hike

Reliance Jio is an Indian telecommunications company, headquartered in Navi Mumbai, Maharashtra. It operates a national LTE network with coverage across all 22 telecom circles. Jio offers 5G, 4G, and 4G+ services all over India and 5G services almost all over India.

Jio is the largest operator in India and the 2nd largest single-country operator in the world, offering services such as connectivity, fiber, mobile devices, apps, and business solutions

Jio announces 12-25% tariff hike

On Thursday, June 27, Reliance Jio announced a tariff hike on its prepaid and postpaid plans, marking the first price increase in two and a half years. The hikes range from 12% to 25% and will take effect from July 3. Among the plans, the most active one with a 28-day validity and 1.5 GB of data per day saw the steepest hike. Another popular plan, offering 84 days of validity, experienced a 20% increase from Rs. 799. These changes are going to be effective from July 3.

Recent Spectrum Acquisition from Jio

The announcement of Reliance Jio’s tariff hike comes a day after the company acquired 14.4 MHz of spectrum in the 1800 MHz band for Rs. 973 crore during the recently concluded auction. The spectrum auction in India wrapped up quickly within a few hours of bidding on Day 2, June 26. Telecom service providers (TSPs or telcos) purchased over Rs. 11,300 crore worth of radio waves in total, which is only 12% of the Rs. 96,238 crore minimum value estimated by the government for the spectrum on offer. This acquisition and the subsequent tariff hike indicate Jio’s strategic moves to strengthen its market position

Conclusion: The Tariff hike by Reliance Jio signifies a broader trend of rising costs in the telecom industry with Vodafone Idea also expected to follow the two largest telecom operators of India. As operators adjust their pricing strategies, consumers may need to brace for higher expenses, while companies seek to balance profitability and service quality.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.