Kalyan Chart – This is why Jio and Airtel recharge plans have become expensive, do you know the inside story?


There has been a big stir in the Indian telecom market once again and the two biggest telecom companies have increased the cost of their recharge plans. The plans of both Jio and Airtel have become costlier by up to Rs 600 and this will affect millions of subscribers. However, this has not happened suddenly and its signs were being seen for a long time. Let us tell you the reason for the plans becoming expensive.

Both Reliance Jio and Bharti Airtel have rolled out 5G services in India and both have made huge investments to build the 5G infrastructure. Currently, no separate 5G recharge plans have been introduced for users and both companies are offering unlimited 5G data to eligible subscribers. This is the reason why there were indications that the plans of both companies would be expensive.

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5G spectrum auction took place recently

So that telecom companies can provide better 5G benefits, airwave auction was organized this week. Airtel, Jio and Vodafone-Idea (Vi) all bid in this auction. The very next day of this auction, Jio and a day later Airtel announced to increase the price of their plans. Yes, the big investment being made for 5G rollout is the reason for the plans becoming expensive.

Industry experts had already said that companies will try to increase their average revenue per user (ARPU) and recharge plans are going to get expensive. Spectrum worth Rs 11,340 crore was purchased in the auction, out of which Airtel acquired the maximum 60 percent. In such a situation, there is maximum pressure on Airtel to make plans expensive.

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Will recharge plans become more expensive?

Vodafone-Idea (Vi) has also spent a huge amount in the 5G spectrum auction, so it is almost certain that its plans will also become expensive. Vi will also start the rollout of its 5G services soon. According to experts, the increase in recharge plans right now is not enough and after some time or by the end of the year, recharge plans can be made expensive again.



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