Airtel Chief Says Mobile Tariffs Need to be Rs 350 a Month Per User

Bharti Airtel, the second-largest telecom operator, is batting for a tariff hike. The telco wants the mobile tariffs to reach about Rs 350 per month per user. The costs need to go up for the users the telco believes. The infrastructure costs are going up and rising costs in other areas are also making it harder for the telco to maintain margins. There are more investments that the telcos need to make, and the current cost of services for the consumers will make it hard for the telecom companies to manage their services and keep growing.

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Commenting on the same, Sunil Bharti Mittal, Airtel Chairman, said “I used to say earlier, the right level is Rs 300 (monthly revenue per user), but that was 10 years back. There’s some inflation we all suffer. Oil prices are up, electricity costs are up, employee costs are up, administrative costs are up. Everything is up.”

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“China has over a million towers. India has about 3,50,000. So we have a job to do. We have to at least double from where we are today,” said Mittal during a conversation with PTI.

Mittal did not comment on when the next round of tariff hikes will be implemented. Airtel already hiked the tariffs by Rs 50 for each of the available postpaid plans recently. This will help the telco in boosting ARPU (average revenue per user) by a little percentage. Further, the telco made a change in the Rs 299 plan, wherein it started offering lesser data compared to before. This is also an indirect tariff hike.