Vodafone Idea and Airtel, the other two dominant players in the market, have already raised prices after announcing huge second quarter losses. This is largely due to extreme cut throat competition in pricing of data plans since Jio came into the scene three years ago.
The low cost disruptor has garner million of subscribers within a short period of time. It is time Economist Vivek Kaul said increasing prices also made sense for Jio. It is time to increase the ARPU. Currently, India users pays the cheapest among the world at around USD 2 monthly for a data plan.
With the increase in prices, it might help the 2 other operators to return to profit. Singtel, which has a share in Airtel will benefit from this increase in price.
This announcement is reflected in the sharp increase in Airtel and Singtel share price in the past 2 days.