Airtel Chairman Says its Time to Repair and Rationalise Tariffs: Report

Mittal said that the time has now come to start rationalising and repairing the tariffs. Airtel's tariffs are already the most expensive in the industry (Vodafone Idea's many tariff plans match Airtel's pricing strategy), and the short-term ARPU (average revenue per user) target of Rs 200 has been achieved by Airtel.

Highlights

  • Bharti Airtel Chairman, Sunil Bharti Mittal, recently said that Airtel will not shy away or hesitate to take the first step to hike the tariffs.
  • Bharti Airtel has been at the forefront whenever tariff hikes are to be implemented in the industry.
  • The tariff hike of 2021 was led by Airtel and the decision to remove the Rs 99 plan as the base offer was also implemented by Airtel. 

Follow Us

airtel chairman says its time to repair

Bharti Airtel Chairman, Sunil Bharti Mittal, recently said that Airtel will not shy away or hesitate to take the first step to hike the tariffs. It wouldn't be the first time Airtel's senior-level executives are saying this. Bharti Airtel has been at the forefront whenever tariff hikes are to be implemented in the industry. To recall, the tariff hike of 2021 was led by Airtel and the decision to remove the Rs 99 plan as the base offer was also implemented by Airtel.




In a conversation with the Economic Times, Mittal mentioned that Airtel has spent around Rs 80,000 crore on the 5G spectrum and rollout while the competition (referring to Jio) has spent more than Rs 1,00,000 on the same. Since there aren't any additional revenues from 5G at the moment, the next natural step for the telcos is to hike the 4G tariffs.

Read More - Airtel Expands Network Footprint in Thrissur District of Kerala

Mittal said that the time has now come to start rationalising and repairing the tariffs. Airtel's tariffs are already the most expensive in the industry (Vodafone Idea's many tariff plans match Airtel's pricing strategy), and the short-term ARPU (average revenue per user) target of Rs 200 has been achieved by Airtel. Now the telco is looking to reach the Rs 250-300 figure as soon as possible.

With the way Airtel's ARPU is progressing (Rs 208 for Q3 FY24), the telco will likely achieve its ARPU target of Rs 250 with a single hike (if the hike is in the range of 15-20%).

Read More - Bharti Airtel Expands Network Coverage in Gujarat’s Rural Regions

Rs 300 ARPU is what Airtel Needs Right Now: Mittal

Mittal said that Rs 300 is the figure that Airtel needs now so that it can keep pace with the inflationary pressures that are associated with the cost of rental for towers, administrative costs, employment costs, fuel, etc.

With the trend that everything is becoming expensive, the telcos need to earn more money out of their customers, signalled Mittal.

When Will the Tariff Hike Come?

As per the industry analysts, a tariff hike is expected only after the central elections are over. So one can anticipate that it would come around the seceond half of calendar year 2024.

Reported By

Tanuja is a passionate technology and telecom buff who has been following the telecom industry for several years now.

Recent Comments

PARAG SHAH :

vodafone should not raise rates , as they onlyhave 4g.

Vodafone Idea Brings New Rs 19 Plan

Santosh Kumar Pal WB :

It's only good for Jio and Airtel users for their 5g smartphone but most people are 4g smartphone users in…

Jio Leads Wireline Subscriber Addition in February 2024: TRAI

Santosh Kumar Pal WB :

Jio and Airtel both lead in lndian telecom sector because of their expansion of FTTH broadband connection. Vi lost their…

Is Fixed Broadband the Next Big Opportunity for Telcos

Santosh Kumar Pal WB :

BSNL should join in this race with the partnership with lSRO. But l very curious whether Elon musk starlink will…

Indian Govt Not in Hurry to Allocate Spectrum for Satcom:…

Santosh Kumar Pal WB :

All lndian cable tv operators need DOCSlS 4.0 technology for their good quality broadband connection.

Rogers Partners With CableLabs to Advance 5G and 10G Network…

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