Broadband prices in India could be increased following recent prepaid tariff hike

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Internet broadband plans could get costlier soon

Broadband prices are soon expected to see a rise and companies are likely to cite sustenance of business as the reason for this change. Telecom companies have recently revised the tariffs on their plan sheet by up to 25 percent. Broadband companies, which include Airtel and Jio, are likely to follow suit, and prices are expected to climb by 15-20 percent. This comes in at a time when telecom service providers and broadband companies have been posting resistance towards the ultra-low charges that the Indian market has experienced for some time now. Difficulties in providing Internet services at such low prices while still keeping their business models viable have publicly been under contention. 

“A 15-20 per cent rise is necessary to make the current services viable.”

“Like telecom Internet services, ARPU (average revenue per customer) for broadband is also required to be corrected as service providers are bleeding in the current war of customer acquisition. A 15-20 per cent rise is necessary to make the current services viable,” said Tapabrata Mukherjee, the co-founder of Meghbela Broadband, told PTI. 

Tapabrata Mukherjee also mentioned that the change is first to be reflected by an update to the broadband plans offered by Airtel and Jio which will consequently allow smaller companies operating at local and regional levels to increase their prices. This is necessary to protect smaller companies from losing out on existing customers. Service providers now have to resort to providing subscriptions to OTT platforms to make their plans more lucrative.