Mobile consumers may feel a greater burden on their wallets, as telecom companies are expected to increase mobile tariffs by 10 to 12 percent by the end of this year. According to media reports, the number of active users and data consumption saw a record increase in May 2025, which has further increased the companies' desire for earnings.
Prices were hiked last year
According to experts, tariffs have been increased by 11 to 23 percent in July 2024 itself. In such a situation, another increase can hurt consumers. Analysts also believe that next time, companies may implement a tiered pricing model, which could limit the benefits of large data plans.
7.4 million new active users added in May
After 7.4 million new active users were added in May 2025, the total figure reached 1.08 billion. This was the biggest increase in the last 29 months. During this period, Reliance Jio added 5.5 million users, while Airtel added 1.3 million users. Jio's share has now reached 53% and Airtel's 36%.
Further user growth will depend on the expansion of 5G
A senior telecom official said, "The rapid increase in the number of users in May is not only an indication of acceptance of tariff hike, but also a return to the use of secondary SIM." He says that now tariff based competition is left behind and further user growth will depend on the expansion of 5G.
According to analysts, lower income users are already struggling with tariff hike. In such a situation, the next increase may especially affect the mid and upper income categories.