Bharti Airtel ARPU Remains Flat in Q4 FY25, What Does it Say

Bharti Airtel offers the most premium services in the industry. The company's plans are mirrored by Vodafone Idea (Vi) in pricing. However, with Airtel, there are more 4G customers and thus its ARPU is much higher than Vi's. 

Highlights

  • Bharti Airtel, India's second largest telecom operator posted a flat ARPU (average revenue per user) in Q4 FY25.
  • The ARPU remained unchanged from Rs 245 in the previous quarter.
  • This is a not good sign for the telco that aims to only add premium customers in its portfolio.

Follow Us

bharti airtel arpu remains flat in q4

Bharti Airtel, India's second largest telecom operator posted a flat ARPU (average revenue per user) in Q4 FY25. The ARPU remained unchanged from Rs 245 in the previous quarter. This is a not good sign for the telco that aims to only add premium customers in its portfolio. This signals that for an entire quarter, the drive of the telco's towards premiumisation of plans and services didn't pan out as it would have liked. Bharti Airtel's ARPU is still the leading figure in the industry. The competition, Reliance Jio stands at Rs 206.2. Even though Airtel added 0.6 million postpaid users and 6.6 million smartphone data consumers to its base, the ARPU didn't move upwards.




This suggests that the effect of the July 2024 tariff hike has likely come in its entirety for Bharti Airtel. Jio showed some improvements, and thus, it will be interesting to see what happens with Vodafone Idea (Vi) in the near future.

Read More - Bharti Airtel Net Profit at Rs 5223 Crore in Q4 FY25, More Details Here

Will Airtel Hike Tariffs Again?

Bharti Airtel offers the most premium services in the industry. The company's plans are mirrored by Vodafone Idea (Vi) in pricing. However, with Airtel, there are more 4G customers and thus its ARPU is much higher than Vi's.

The important question to ask here is whether Airtel will again hike the tariffs now that the ARPU stands still. The telcos have time and again said that the tariffs need to go up. While Crisil expects the industry return on capital employed (ROCE) to move up to 12% in this fiscal, the telcos are still worried about their returns.

Read More - Will Jio See a Sudden ARPU Boost with 5G Monetisation

The next round of tariff hikes could be closer if the ARPU growth slows down signficantly for every player. But again, Airtel can't be the first player to hike the prices. It will have to be in collaboration with the other players to avoid any scenario of customer loss.

No particular timeline is present for the next tariff hike. It will depend on the telcos and their general mood and understanding of the market.

Reported By

Editor in Chief

Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

Recent Comments

Alex :

Yeh Raaz Bhi Usi Ke Saath Chala Gaya

Vodafone Idea Acquires 26% in Aditya Birla Renewables SPV 3

Ved :

Those who don't know what is their responsibility in a country and blame everything on govt. Take an example if…

India Pushes Private Operators to Use Local Telecom Gear: Report

Rohit Kumar :

Not sure about other locations but i can see the Call silence moments during a call most in jio now…

Vodafone Idea Struggles in North East; TRAI Drive Test Puts…

Faraz :

How come they have money to acquire in other businesses but no money to invest in their own

Vodafone Idea Acquires 26% in Aditya Birla Renewables SPV 3

Faraz :

BSNL has better coverage than Vi since 4G rollout and recently Even have more customers in Vi non priority circles.…

Vodafone Idea Struggles in North East; TRAI Drive Test Puts…

Load More
Subscribe
Notify of
guest
10 Comments
newest
oldest most voted
Inline Feedbacks
View all comments