Despite competition in the Indian telecom market, now mobile users are going to get another setback of prepaid plans being expensive. Telecom company Vodafone Idea (VI) is allegedly preparing to increase the prices of its 5G prepaid plans, which is likely to increase the financial burden on customers. This news is a matter of concern for millions of VI users who were still taking advantage of the company’s affordable services.

Reason for price increase:

Although the article does not stated a specific cause of prices rise, usually telecom companies do this for increasing their revenue, completing operational costs, expanding 5G networks and paying spectrum charges. Constant increasing competition and large investment in infrastructure forces companies to make changes in the prices of tariff plans. VI is under great pressure of debt anyway and the company is constantly struggling to maintain its stake in the market, so this step can be an attempt to improve their financial position.

Effect on customers:

The cost of VI’s 5G prepaid plans will have a direct impact to millions of customers who have chosen VI for 5G connectivity or who are thinking of upgrading to 5G in future. This would mean that users will now have to pay more for unlimited calling, data and other benefits. This step has come at a time when other telecom companies like Reliance Jio and Bharti Airtel are constantly expanding their 5G networks and are offering many types of plans to attract customers.

Competition in the market:

This price increase may also affect the status of VI in the telecom market. If other operators do not increase their prices, VI customers may turn to other companies. However, if the tariff increases in the entire industry, the customers will have very few options.

Users are advised to check the validity of their existing plans and monitor the official announcements of VI for any upcoming price change. The purpose of this growth may be to ensure the company’s stability and better offering of better 5G services, but immediately it will put additional load on consumers’ pockets.