Bharti Airtel and Vodafone Idea on Friday announced a 10-24 per cent hikes in prepaid and postpaid mobile tariffs, a day after larger rival Reliance Jio announced an increase in rates.

The move assumes significance, as it marks the first major increase in tariffs by the telecom industry in two-and-a-half years as the telcos begin recouping the billions poured into 5G technology over two years.

Reliance Jio and Bharti Airtel will roll out increased mobile service rates from July 3 onward and Vodafone Idea from July 4.

Airtel has been strongly advocating the need for tariff hikes in the industry, and has time-and-again flagged the “absurdly low” levels of rates prevailing in India compared with other parts of the world.

In the unlimited voice plan category, the tariff has been raised from ₹179 to ₹199, marking a ₹20 increase in this 28-day validity plan that offers 2GB of data to users.

The post paid rates will see 10-20 per cent increase, translating to ₹50-200 hike in absolute terms depending on number of connections and benefits dished out.

“We have ensured that there is a very modest price increase (less than 70 paise per day) on entry-level plans, in order to eliminate any burden on budget challenged consumers,” Airtel said.

Airtel said it has maintained that the mobile average revenue per user (ARPU) needs to be upwards of ₹300.

“We believe that this level of ARPU will enable the substantial investments required in network technology and spectrum and offer a modest return on capital,” the telco said.

Vodafone Idea has raised the entry-level plan, minimum recharge value for 28 days of mobile service, by about 11 per cent to ₹199 from ₹ 179.

Vi has raised the price of a popular 84-day validity plan with 1.5 GB data per day to ₹859 from ₹719 earlier.

“Staying true to its philosophy of supporting entry-level users and progressively linking higher prices to increased usage, changes in entry-level plans are nominal,” Vi said.

“Vi is planning significant investments over the next few quarters to further enhance the 4G experience as well as launch 5G services,” the statement said.

Jio on Thursday had raised its mobile tariff rates by 12 per cent to 27 per cent.