News: Reliance Jio has taken 12-25% increase in telecom tariffs across prepaid plans and 12-17% hike in postpaid plans, being the first telco to announce and wef 3 July. The highest increase of 25% is in one plan of 1.5 GB/day. The unlimited data for 5G, however, would continue for all 2 GB/day and above plans. JioBharat/JioPhone users will continue to have the existing tariffs.
Views: We highlight that the tariff hike would result in stepped up ARPU of ~17%, as per our assumptions, assuming a 100% pass through, three fourth of which will be seen in FY25. The hike is tad higher than our expectations of ~15% step up hike, which will drive ~ 4% upgrade in our EBITDA estimates. We expect the other peers to also follow suit with similar hikes.
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