Airtel MD Calls for Some More Tariff Repair, Highlights India’s Lowest ARPU Globally

Airtel CEO Calls for Some More Tariff Repair, Highlights India’s Lowest ARPU Globally
Bharti Airtel reported a strong Q3 FY2025 performance with a steady increase in Average Revenue Per User (ARPU), reinforcing its push for higher tariffs and premium customer acquisitions. The telecom company recorded an ARPU of Rs 245, up from Rs 233 in the previous quarter, reflecting growth driven by a combination of tariff adjustments and others. “ARPU drivers on an underlying basis remain intact; these are basically feature phone to smartphone upgrades, prepaid to postpaid upgrades, data monetisation, and growth of international roaming,” said Bharti Airtel’s Vice Chairman and Managing Director (MD), Gopal Vittal, during the company’s Q3FY25 earnings call.

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Also Read: Bharti Airtel Growth Drivers Remain Intact: HSBC Global Research

ARPU Growth Strategy

Airtel’s organic ARPU growth drivers remain intact. This means that even without tariff revisions, ARPU follows its trajectory, driven by the company’s key strategies. According to Airtel’s MD, these include:

  • Feature phone to smartphone upgrades – Encouraging feature phone users to shift or upgrade to 4G/5G networks or smartphones will expand Airtel’s 4G and 5G customer base, commonly referred to as smartphone customers.
  • Prepaid to postpaid migration – Airtel is also focusing on migrating prepaid users to postpaid plans, targeting an estimated 80 million potential postpaid customers with bundled family offerings and premium benefits.
  • Data monetisation – Additionally, data monetisation remains a key priority, with Airtel users typically opting for 2GB per day with unlimited 5G plans and data packs to increase consumption. We have already discussed this aspect in our earlier story here.
  • International roaming – The company is also leveraging the growth of international roaming packs, capitalising on the rise in global travel to enhance revenue streams.

These efforts, combined with potential tariff revisions, are helping Airtel sustain ARPU growth, according to the company.