The Indian telecom industry is going to see repeated tariff hikes in the coming years. This will specifically happen with 4G tariffs. Right now, because the prepaid mobile tariffs are very affordable, a lot of users keep more than one SIMs active at all times. This gives them the freedom of using multiple networks for staying connected with their friends, family, and colleagues. But there’s one thing that a lot of multiple SIM owners in India will think after a few more rounds of tariff hikes — Is the secondary SIM worth it? This is because the cost of keeping the secondary SIM will keep going up. While for sure a lot of people would still own it to hedge against the network service deterioration from one telco, there will be many who will be dropping their second SIM without a lot of thinking.
Does Owning a Single SIM Makes Sense?
Well, the answer to this question depends on a lot of things. First of all, it is worth considering whether there’s an actual need for the second SIM. Second, are both the SIMs from a single telecom operator? Third, is the user over-spending just to keep the secondary SIM active? These are the questions that a user will have to answer, and the answers will vary for sure, but the decision to keep a secondary SIM will only make sense if there’s an actual need for it. Right now, almost everyone owns multiple SIMs. But with the tariffs going up, it might become a different scenario. This would also mean that the telcos might see a gradual drop in their total subscriber base. However, it should help with rising average revenue per user (ARPU) figure. The private telcos are expected to raise tariffs again later this year. It will be interesting to see whether Bharat Sanchar Nigam Limited (BSNL) will join the private players.
How Much Tariff Hike Might Come?
The telcos might again aim for a 15% to 25% increase in the tariffs. This will help them increase their ARPU and get a better return on their investment. The telecom operators aren’t solely focused on adding new subscribers by offering lower tariffs anymore. They want their ARPU to increase and earn more money to be profitable so that they can invest more in the business and come out with better services as fast as possible to stay ahead of the competition curve. It will be worth waiting to see whether the tariff hikes will come again in November or the December period of this year or will it arrive even earlier.
