Airtel Targeting Higher ARPU of Rs 300, Another Tariff Hike Around the Corner

Bharti Airtel reported an increased ARPU of Rs 157 from the previous quarter’s Rs 154 and is further looking to increase it

Bharti Airtel recently released its quarterly report as per SEBI guidelines. The telco reported an increased average revenue per user (ARPU) of Rs 157 in the Q1’21. Gopal Vittal, CEO of Bharti Airtel said that the telco will be looking for reaching a higher ARPU mark in the coming time. This is so that the telco could ensure that it is running a sustainable business with a good and strategic business model. Vittal said that Airtel would stop working with its Chinese partners ZTE and Huawei in case there is a notification from the government. But then that would mean the telco will have to purchase the 5G spectrum from either Indian companies or from some other country, which will be quite expensive for the company.

Tariff Hike Necessary to Ensure Higher ARPU

Airtel doesn’t offer the cheapest plans right now. That said, Vittal noted that the tariffs have to go up even further. The only question that needs to be answered is that when is the right time to do so. Higher tariffs will ensure that ARPU of Bharti Airtel reaches Rs 200 from the current Rs 157 and then later Rs 300 as well. This will help the telco in maintaining a sustainable business model and along with that will help them in making meaningful capex expenditure.

Vittal said that Bharti Airtel is not in a hurry for deploying 5G services. The telco believes that the current base price for 5G airwaves which is set by the regulator is not the right one, it is far too expensive than what it should be. Vittal further said that it would take years for India before it can get the 5G ecosystem which makes any impact.

Along with that, Bharti Airtel has shut down its 3G network and services. But the telco is yet to move on from the 2G network. Vittal said that they are not in any hurry for shutting down the telco’s 2G services. Only when the revenue coming from the 2G network is very low, the company will make a decision on continuing it or not.

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Aakash Hinduja

Get ready for decline of subscriber base. Due to their monthly minimum recharge of Rs 50, people are disconnecting secondary other sim cards. People use to have 3 to 4 sims but now people are disconnecting it and using 1 primary number. If they hike rates then people will shift to wired broadband and all will use from wifi. AIRTEL & VODAFONE will incurr more loss of revenue and loss of subscribers too.

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Mumbai
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BSNL
Chetan

If these telco raise tariffs in lower recharge it may even happen that the person using 1 primary number may EVEN stop using mobile phone and will go out of touch with the world and near and dear ones.. no they cannot use wired broadband, these people are from lower strata income and they can’t afford BROAFBAND …

People who can afford broadband are already using multiple sims…

Losses are only in SME business numbers and lower strata income guys…Hence airtel is waiting for right timing to hit thr hammer. Vil will follow airtel foot steps.

Thamilan daa

Tt is pushing users to recharge yearly packs and that too in advance by signing a UTT (under the table) deal with avoid. There is a news that vodafone will shutdown. But the case is still being dragged. Some said that the Earth will destroy on 12th June 2020. Nothing happened. Same will apply for this news. At least be happy that airtel is only increasing the price of booster packs. Vodafone is looting the main balance even under fully blocked DND and no services active on 155223 and providing worst cc service. I challenge that you all here will… Read more »

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