Mobile Recharge Plans to Get Costlier? Vodafone Idea Chairman Kumar Mangalam Birla Backs Periodic Tariff Hike

Debt-laden telecom operator Vodafone Idea (Vi) has once again signalled that higher mobile tariffs may be necessary as the company looks to strengthen its financial position and accelerate network investments. Chairman Kumar Mangalam Birla said periodic tariff revisions are essential to sustain investments in next-generation telecom infrastructure, indicating that Vi users could see costlier recharge plans in the coming months.

Vi Signals Mobile Recharge Price Hike; Kumar Mangalam Birla Says Tariff Revisions Vital

The comments come at a crucial juncture for the telecom company, which is in discussions with lenders to secure funding for its Rs 45,000 crore capital expenditure program planned over FY27 to FY29. The proposed investment is aimed at expanding the company's 4G and 5G network footprint and improving service quality as competition intensifies in India's telecom sector.

Vi Tariff Hike Likely? Why Kumar Mangalam Birla Is Advocating Higher Mobile Prices

In his message to shareholders, Birla said India's Average Revenue Per User (ARPU) remains among the lowest globally, making periodic tariff increases necessary for telecom operators to continue investing in network upgrades and future technologies.

He noted that telecom companies require sustained capital not only for spectrum acquisition but also for expanding towers, fibre networks, radio equipment, software systems, power infrastructure and overall network capacity. As mobile data consumption continues to surge, operators need stronger revenue generation to maintain service quality and fund next-generation connectivity.

Jio, Airtel and Vi Recharge Plans To Become Costlier?

According to media reports and industry estimates, Reliance Jio, Bharti Airtel and Vodafone Idea could increase mobile tariffs by around 12% to 15% over the next three to four months.

The potential hike comes after the telecom industry made massive investments in acquiring 5G spectrum and rolling out nationwide 5G infrastructure. While operators continue offering unlimited 5G data on select plans, they are now looking to improve returns on these investments through gradual tariff revisions.

Rs 45,000 Crore Investment Plan Key to Vodafone Idea's Turnaround

Vodafone Idea's proposed Rs 45,000 crore capital expenditure plan remains central to its long-term revival strategy. The company is currently negotiating with lenders to secure long-term financing that will support network expansion between FY27 and FY29.

The investment is expected to strengthen 4G coverage, accelerate 5G deployment and improve customer experience, while also helping restore confidence among subscribers, investors and business partners.

ARPU Growth Remains Critical for Telecom Operators

ARPU, or Average Revenue Per User, remains one of the telecom industry's most closely tracked financial metrics. Vodafone Idea reported an ARPU of Rs 190 for the March 2026 quarter.

Industry experts note that improving ARPU is critical for operators to generate sufficient cash flows for continuous infrastructure investments. As per reports, both Reliance Jio and Bharti Airtel have also been working towards increasing monthly ARPU to the Rs 200-Rs 300 range as they focus on balancing subscriber growth with profitability.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.