Written By Shubham Arora
Published By: Shubham Arora | Published: Jan 09, 2026, 04:54 PM (IST)
Mobile users in India may have to pay more for recharges starting this year. Reports suggest telecom companies are planning another round of tariff hikes, possibly around mid-2026. If it goes through, this would be the first major price increase in almost two years and could push monthly bills up for many people. Also Read: BSNL Wi-Fi Calling Now Available Across India, Offered Free To Users
According to analyst estimates, mobile tariffs could go up by around 15% in June 2026. This timeline broadly matches how the telecom sector has operated in the past, with price increases usually spaced out by a couple of years. Apart from headline tariff hikes, operators are also seeing higher average revenue per user as more customers consume data, move to postpaid plans, and rely more heavily on mobile internet for everyday tasks. Also Read: Why The Government’s Latest Relief To Vodafone Idea Has Exit Written All Over It
All of this is helping telecom companies improve their revenue outlook after years of intense competition and high network investment costs. Also Read: Jio’s New Year 2026 Plans Explained
If the price hike goes through, analysts expect the sector’s revenue growth to pick up sharply in FY27. Estimates suggest that revenue growth in the sector could move closer to 16% year-on-year, compared to about 7% expected in FY26. Average revenue per user is also expected to increase after the hike, even if the pace of new subscriber additions slows down.
That said, subscriber growth may slow down. Higher prices often lead users to cut back, switch plans, or delay recharges, at least in the short term.
Reports indicate that Reliance Jio may raise tariffs by 10 to 20% as part of this cycle. The move is seen as a way to improve returns and bring its pricing more in line with rivals such as Bharti Airtel.
For Vodafone Idea, the picture remains more difficult. Analysts believe the company may need much steeper tariff hikes over the coming years to meet its financial obligations. While the government has frozen Vodafone Idea’s adjusted gross revenue dues for now, payments are set to begin later in the next decade. Even with possible relief measures, the company is expected to rely on higher tariffs and additional funding to stay afloat.
One factor working in favour of telecom companies is the slowdown in capital expenditure. On the infrastructure side, most large 5G rollouts are already in place. As a result, spending on new network expansion is expected to come down over the next few years. Lower capital expenditure could help telecom operators improve margins while they adjust pricing.