Jio, Airtel 5G pricing surge: Consumers to spend Rs 47,500 cr more annually
Business StandardConsumer spending on telecom services, including taxes, is set to surge by around Rs 47,500 crore annually, spurred by substantial tariff hikes from India's leading telcos and elevated rates for users embracing 5G services, reported The Economic Times. Jio users now face a 46 per cent increase in the minimum charge for accessing 5G, while Airtel users encounter a steeper 71 per cent hike, sources told ET. Goldman Sachs estimates Jio's tariff revisions could lead to a 17 per cent increase in ARPU. Looking ahead, Goldman Sachs anticipates 15-20 per cent compound annual revenue growth rates for both Jio and Airtel over the next three years, alongside 25-30 per cent EBITDA growth, assuming further tariff revisions. BNP projects Jio to reap greater benefits from its tariff adjustments compared to Airtel, forecasting 18 per cent and 17 per cent revenue growth respectively for FY25.