The Era of Cheap Internet is Officially Over!

The Great Indian Telecom Tariff Hike: Why Your Phone Bill Keeps Rising (And Is Another One Coming?)

"Data Was Free, Now It’s a Fee: The Era of Cheap Internet is Officially Over."

It is November 2025. If you look at your mobile recharge history, you will notice a painful pattern. The plan that used to cost ₹599 a few years ago became ₹719, and today, it sits uncomfortably close to ₹859 or more.

In July 2024, we witnessed a massive price hike from all three private giants—Jio, Airtel, and Vi—raising our bills by up to 25%. Now, as we approach the end of 2025, the market is buzzing again. Rumors are flying, analysts are predicting, and common users are worried: Is another price hike coming in the next few months?

Let’s break down exactly what has happened, why it is happening, and what the future holds for your mobile wallet.

1. The Price Hike History: A Look Back (2021 vs. 2024)

To understand where we are going, we must look at where we came from. The era of "Jio Free Data" is long gone. Since 2021, telecom companies have been slowly but steadily increasing prices to improve their profitability.

Here is a simple comparison of how much extra you are paying today compared to a few years ago.

Comparison Table: Price Hike Trends (2021 - 2024)

2. The Rumors: Is a New Hike Coming in late 2025 or 2026?

Yes, the rumors are strong, and they are coming from credible sources.

As of November 2025, market analysts and industry insiders are predicting another round of tariff hikes. Here is what is being said:

• The Timeline: Experts from brokerage firms like Axis Capital and ICRA predict a tariff hike could happen between December 2025 and June 2026.

• The Expected Hike: The anticipated increase is around 10% to 15%. While this is lower than the 25% shocker we saw in 2024, it will still pinch your monthly budget.

• Jio's Stance: In its recent quarterly call (Q2 FY26), Reliance Jio stated they have "no immediate plans" for a headline tariff hike right now. However, they admitted they are "nudging" consumers to pay more by removing cheaper plans and pushing users toward expensive monthly or quarterly packs.

• Airtel & Vi: Both competitors have openly stated that current prices are still not sustainable. Airtel’s management has repeatedly said that the Average Revenue Per User (ARPU) needs to cross ₹300 for the business to be healthy. Currently, it is hovering around ₹256.

In simple terms: While companies might not announce a sudden "Breaking News" hike tomorrow, they will likely increase prices quietly by early 2026 to meet their revenue targets.

3. The "Why": 4 Reasons Why Companies Keep Increasing Prices

You might be wondering, "Why are they doing this? I am already paying so much!"

The telecom companies have four major reasons for these back-to-back hikes.

Reason 1: The "Failed" 5G Monetization

Indian telecom operators, especially Jio and Airtel, have invested a mind-boggling ₹4.5 lakh crore in setting up 5G towers and infrastructure across India.

• The Problem: Despite this massive investment, they are not making enough extra money from 5G. Most users are using 5G just to check speed tests or scroll Instagram faster—they aren't paying extra for it.

• The Solution: Since they can't charge you separately for 5G yet, they are increasing the price of all 4G and 5G plans to recover that massive cost.

Reason 2: The Hunt for Higher ARPU (Average Revenue Per User)

This is the most important metric for telecom companies. It calculates how much money they make from one customer every month.

• The Goal: Airtel and Jio want this number to be ₹300.

• The Reality: Even after the 2024 hike, Airtel's ARPU is around ₹256 and Jio's is around ₹211.

• To bridge this gap between ₹256 and ₹300, they must increase prices again. They cannot reach their profit targets without asking you to pay more.

Reason 3: Infrastructure Costs vs. Earnings

The cost of maintaining towers, paying for electricity, and managing the network has gone up significantly.

• Industry reports show a widening gap between what it costs to run the network and what they earn.

• Big apps like YouTube and Netflix consume 70% of the network traffic, putting a huge load on the system, but telecom companies argue they don't get paid extra for carrying this heavy traffic. This cost is eventually passed down to you, the subscriber.

Reason 4: India is No Longer the "Cheapest"

For a long time, we proudly said India has the world's cheapest data. That is changing.

• Recent reports indicate that India has lost the title of the "country with the lowest telecom tariffs" to countries like Bangladesh and Egypt, which now offer lower base plan rates.

• While our data (per GB cost) is still very affordable compared to the West, our entry-level voice plans are becoming expensive. Companies feel there is still room to increase prices for premium users who consume lots of data.

Conclusion: What Should You Do?

The days of cheap telecom wars are over. We are now in a Duopoly (almost) market where Jio and Airtel dictate the terms, and Vi tries to survive.

If the analysts are correct about a hike in early 2026, here is a smart move:

• Lock in an Annual Plan: If your plan is expiring soon (in late 2025), consider recharging with a 365-day plan immediately. This will protect you from any price hikes for the next one year.

• Check Your Usage: Do you really need 2GB/day? If you have Wi-Fi at home and office, switching to a cheaper 1.5GB/day plan might save you the money that the price hike takes away.