Post-election Strategy: Airtel's Tariff Hike vs. Jio's Focus on Data Usage - What to Expect?

Jio and Bharti Airtel are formulating different strategies for tariff adjustments following the parliamentary elections. According to industry reports, Bharti Airtel plans to raise headline tariffs, while Jio is expected to focus on increased data usage, enticing users to upgrade to higher-tier packages.

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This approach is projected to boost Jio's average revenue per user. With Jio's flat Arpu in the October-December quarter and the anticipated subscriber churn from Bharti, Jio is expected to benefit and strengthen its Arpu growth. Additionally, the commencement of the Indian Premier League is likely to result in a surge in data consumption for Jio.

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Jio is also making efforts to promote the adoption of its JioFiber broadband plans by bundling them with various services, without offering complementary offerings in these packs, to enhance user recognition of their value.

Market analysts have factored in potential tariff increases by operators after the elections, with many expecting Bharti to lead this effort. It is anticipated that Bharti will spearhead a strong 15% tariff hike, which will likely stabilize Arpu to ₹260+ levels by FY26.

Jio and Bharti Airtel control most of the market, with about 82% combined. Vodafone Idea has a smaller share at 18.5%. Jio's share went up to 46% from 41.6%, and Bharti's increased to 33.5% from 31.2% in the last quarter.