Key Takeaways
- Airtel announced up to 22 pc hike in mobile tariffs to maintain a financially healthy business model.
- Airtel believes that the mobile ARPU needs to be upward of Rs 300 to enable substantial investments in network technology and spectrum.
- The hike in mobile tariffs aims to offer a modest return on capital and eliminate any burden on budget challenges.
New Delhi: A day after Jio hiked mobile tariff, India’s second largest telecom operator Bharati Airtel today announced up to 22 per cent increase in its tariff with effect from July 3, 2024.
The lowest plan of Rs 179 with validity of 28 days will now cost Rs 199, the company said in a regulatory filing with the stock exchanges.
“Airtel has maintained that the mobile Average Revenue per User (ARPU) needs to be upward of Rs 300, to enable a financially healthy business models for telcos in India,” Airtel said.
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.
In this light, “we welcome the announcement in the industry to repair tariffs.” Airtel will also revise it by July 3.
The company, however, claimed that there is a very modest price increase (less than 70 paise per day) on the entry plans, in order to eliminate any burden on budget challenges.
