Airtel Consumers Accepted Prepaid Tariff Hike of 2021 Pretty Well

On February 7, 2023, Bharti Airtel Limited announced its financial results for the quarter ending December 2022. The special thing about this quarter (Dec 2022) is that it marks the completion of one year from when Airtel and other telecom players implemented prepaid tariff hikes for mobile services. The tariff hikes did result in wireless subscriber loss for the sector in the short term. However, one thing that stood out was the fact that when all the telecom players were losing wireless subscribers, Airtel was adding them. Be it the month of Jan or Feb 2022, when Jio and Vodafone Idea (Vi) lost wireless subscribers, Airtel added them.

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It suggests that when it comes to paying a premium for mobile services, consumers turn towards Airtel. This is partly because of better branding from Airtel, and also, when it comes to paying more for services, consumers would want to turn towards the brand that is giving the best service. According to Opensignal data, Airtel has been ahead of its competitors in key experience areas for a long time.

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This is why, even though most of the tariffs of Airtel and Vodafone Idea (Vi) match, the average revenue per user (ARPU) per month figure and overall revenue figure are way different for both operators. Airtel’s ARPU is the highest among all the players in the industry. The telco’s plans are slightly more expensive than Jio’s plans, but that hasn’t really disturbed its business in a major manner. The time for cutthroat competition for market share is gone. The telcos now want to improve profit margins by earning more from each customer.