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The country's two big telecom companies, Airtel and Reliance Jio, are preparing to give another blow to the customers. According to a report, mobile recharge prices may soon increase by about 15 percent. It is worth noting that Airtel has recently discontinued some of its cheap prepaid recharge plans, due to which users have to choose expensive options. As a result, further increase in recharge prices in the next 3 to 4 months may impose a significant financial burden on customers. Let's take a look at the reasons behind this possible move.

**Recharge prices may increase in 3-4 months**

According to media reports, Jio and Airtel may increase their mobile tariffs by 12 to 15 percent. However, this is just a market estimate at this point; Neither of the two companies has made any official announcement regarding such increase in prices.

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If this estimate proves correct, it will directly impact both prepaid and postpaid customers. Users who recharge their mobile connection every month or every quarter will have to pay more for their plan.

**Why might tariffs increase?**

Telecom companies often change their tariffs. The reasons for these changes include network expansion, development of 5G infrastructure, spectrum cost and the need to increase average revenue per user (ARPU). If companies increase prices, even cheap plans can become expensive. This means that customers with limited budget may have to rethink their mobile spending.

**Question on profit of Jio and Airtel**

Speculations about increase in recharge cost are also increasing because both Jio and Airtel had registered a net profit of more than Rs 30,000 crore last year. In such a situation, many users are wondering: If companies are earning so much profit, then what is the need to increase the prices of mobile recharge?

What effect will this have on users?

For example, an increase of 12 to 15 percent will increase the cost of existing recharge plans accordingly. For example, if a plan is currently priced at Rs 500 and its price increases by 12 percent, then the user will have to pay Rs 560 for the same plan. Similarly, if the increase is up to 15 percent, the user may have to pay Rs 575.

Increasing duopoly in telecom sector (domination of two companies)
It is worth noting that the dominance of Jio and Airtel in the Indian telecom market is continuously increasing. Although other operators like Vodafone Idea and BSNL are also present, Jio and Airtel have a very strong position in the private mobile market. This is the reason why duopoly is often discussed in the telecom sector. Duopoly means a market situation in which two big companies dominate a particular sector. In such a market, if both the companies increase their tariffs (rates), then customers are left with no other option for service other than these two companies.