Telecommunication companies are facing a massive decline in their revenue from the recharge sector. Bharti Airtel and Reliance Jio are affected by this profit decline. Companies might revolute against this with a price hike on cellular recharges.
Airtel and Jio Recharge Price Hike!!
Global investment banking firm, Jefferies has recently informed users via a statement saying that due to the decline in the profit margins. The telecom companies, Airtel and Jio recharge prices are about to increase by 10%.
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The companies have reported that the major cause of the loss is that they are facing issues with the increase in the cost of serving their users. The average revenue per user (ARPU) has substantially declined, causing a gradual loss figure for the companies.
Airtel and Jio recharge prices are about to skyrocket by the end of last financial quarter in March 2023. Moreover, Jefferies said the price will increase by 10% the end of every financial year of 2023, 2024 and 2025.
As per the reports of TRAI, Jio has increased its user count by adding around 7,20,000 subscribers to its network. Airtel has made 4,12,000 connections during this financial year. However Vodafone and Idea are facing great decline in their subscriber count since the major hit on their revenue. VI has faced loss of around 40,00,000 users due to poor service and downfall of Vodafone and Idea.
Jio and Airtel are currently the top leading Telecommunication firms in India. They collectively own the largest number of users in India. Airtel and Jio recharge price services will hike by up to 10% by the end of financial year in 2023. Moreover, the price of cellular data will be increased at the end of every financial year of 2023, 2024 and 2025.