Indian Telecom Tariffs Set to Rise by December 2025: Report Signals 10–20% Hike Amid 5G Expansion

Indian telecom subscribers may soon face higher bills, as leading operators like Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) are expected to implement another round of tariff hikes by the end of 2025. According to a report by global brokerage firm Bernstein, the increase is part of a continued effort to improve revenue visibility and address rising capital demands driven by the ongoing 4G and 5G network expansion.

Fourth Tariff Hike in Six Years Anticipated

The report suggests that Indian telcos may raise tariffs by 10% to 20% in November–December 2025, marking the fourth major price hike since 2019. The most recent increase took place in July 2024, when operators hiked tariffs by as much as 25%. With telecom infrastructure upgrades and 5G rollout in full swing, the latest price adjustment is positioned as a “tariff repair” mechanism necessary for long-term financial sustainability.

“We anticipate a tariff hike in November-December 2025, in line with ongoing tariff repair efforts across the industry,” the Bernstein report noted, adding that this could serve as a key catalyst to boost sector revenues.

Strong Revenue Outlook for Airtel and Jio

The report forecasts mid to high-teen revenue growth for both Airtel and Jio from FY2025 to FY2027. This growth will likely come from a combination of subscriber additions and rising Average Revenue per User (ARPU) metrics. Operators are also expected to drive more value from existing users rather than relying solely on market expansion.

Bernstein estimates a 15% hike in December 2025, followed by regular annual hikes up to 2033. The long-term goal is to achieve a 10% compound annual growth rate (CAGR) in tariffs across the sector.

Vodafone Idea’s Revival and Government Backing

Vodafone Idea, India’s third-largest telecom provider, continues to navigate financial turbulence. However, a recent move by the Indian government to convert spectrum dues into equity, raising its stake in Vi from 22.6% to 48.99%, is seen as a sign of long-term support for a three-player market structure.

“The equity conversion signals the government’s commitment to preserve a three-player market structure & increases the probability of price discipline & future tariff hikes,” the report added.

With increased capital support, Vi is projected to stabilise its subscriber base and reduce user churn starting in the second half of FY2026, according to Bernstein.

What This Means for Consumers

If the predicted hikes materialize, telecom users across India may experience steeper mobile and broadband bills by the end of 2025. However, the gradual rollout of 5G services, improved network quality, and higher data speeds could offer value for the increased cost. As the Indian telecom sector consolidates further, subscribers may also witness fewer operators but stronger services.