Mobile Recharge Prices Set to Rise by 16–20% in 2026: Airtel Likely to Gain Most

Indian telecom users may have to spend more on mobile recharges next year as major operators are expected to increase prepaid and postpaid plan prices by 16 to 20 percent in 2026. According to a new report by Morgan Stanley, the hike in tariffs for 4G and 5G plans will boost operators’ revenues and average revenue per user (ARPU), with Airtel likely emerging as the biggest beneficiary.

Why Prices Are Increasing

The telecom industry has witnessed multiple price hikes over the past few years:

• 2019: Prices rose by 15–50%
• 2021: 20–25% increase
• 2024: 10–20% increase

The key reasons behind the upcoming hike include growing investment in 5G infrastructure, removal of low-cost plans, and inclusion of additional OTT benefits in higher-priced packages. This strategy is expected to encourage customers to opt for costlier plans, thereby boosting ARPU and overall profitability.

Who Benefits the Most?

Morgan Stanley’s analysis suggests Airtel has historically benefited the most from tariff increases, with its revenue and profit growth outperforming other telecom players. With 5G coverage now reaching nearly 90% of India, telecom companies are preparing for a future where Artificial Intelligence (AI) plays a major role in service optimization. ARPU is projected to rise to ₹370–390 per user by 2032.

What the Operators Say

• Airtel: Vice Chairman and MD Gopal Vittal highlighted that India has one of the lowest per-user revenue and per-GB prices in the world. “There is room for price rationalization, and changes in plan structures will naturally increase ARPU,” he said.
• Vi (Vodafone Idea): CEO Abhijit Kishore stated that the timing and scale of price increases will depend on the moves of larger competitors like Jio and Airtel. He added that while price hikes are necessary, they must be implemented strategically.

Impact on Consumers

The anticipated price increase will affect millions of prepaid and postpaid users across India. While telecom companies will see higher earnings, customers should be prepared for more expensive recharge plans in 2026.

This move underscores the ongoing transition of India’s telecom sector toward premium services, 5G adoption, and AI-driven network efficiency, with the potential to contribute significantly to industry revenues and the country’s GDP.