Airtel Unique Strategy Pushing the Telco Towards Strong Future

Bharti Airtel

Bharti Airtel, the second-largest telecom operator, is in a very good position post the tariff hikes and the reforms announced by the government. Note that Airtel wasn’t in a bad position either before the sectoral reforms were introduced. The reforms have just helped the telco in strengthening its market position and freed up cash flow to be able to invest in its networks for optimising performance and reaching more Indians as fast as possible.

  • Make Telecom Talk My Trusted Source
  • Source of Google
  • Source of Google

Airtel ARPU Was Highest in the Industry, Tariff Hikes to Push Further

Bharti Airtel’s average revenue per user (ARPU) figure was already the highest in the industry before tariff hikes. With the tariff hikes, that should only grow further. The telco is in a very sweet spot. Airtel’s target is to reach Rs 200 ARPU levels in the short term and Rs 300 in the long term. With this tariff hike, the telco’s ARPU should get a strong boost as low-end users would discontinue purchasing services or port out to more affordable alternatives such as Reliance Jio and Bharat Sanchar Nigam Limited (BSNL).

Airtel will be left with users who are willing to pay more for getting better services. Note that a postpaid tariff hike is in order as well. While the telcos haven’t hinted anything about that, postpaid services are also expected to become more expensive in short to medium term.

All of this will increase the blended ARPU of the telco, and the December quarter should be a sweet period for the telco.