Airtel’s MD and Vice Chairman Talks About Tariff Restructure in India

Bharti Airtel, India’s second-largest telecom operator in India, has been pretty vocal about raising tariffs in India. It is not just raising tariffs, the company has also talked about how the tariffs need to be restructured for better margins for the telcos. Airtel’s Average Revenue Per User (ARPU) remained flat at Rs 245 for two straight quarters. This is not a good sign for a company that’s boasting of having high paying customers and pushing them to pay more.

• Make Telecom Talk My Trusted Source
• 
• 

Read More – Airtel Users to Get this Google Service Worth Rs 780 for Free

Airtel’s MD and Vice-Chairman, Gopal Vittal, said that the tariff structure needs repair. The tariffs in India are still the lowest globally. The tariff structure, acccording to Vittal, is broken. Currently, there’s a one-size-fits-all pricing model that’s present in India. This needs to change and people who consume more should be asked to pay more.

Vittal said, ” India mobile tariff continues to remain one of the lowest globally and needs further repair. We have also said that the current telecom tariff structure in India is broken, with a one-size-fitsall pricing model, which is not appropriate for upgradation, nor is it in line with any other market.”

Read More – Bharti Airtel’s Affordable Data Vouchers with 1 Day Validity

“Restructuring the tariff architecture is essential to improve financial health of the industry and sustain future investments. This could simply mean reducing data allowances on some of the packs and charging more for those who can afford to pay,” Vittal added.