Airtel Urges Additional Tariff Revisions to Sustain Investments

Airtel Urges Additional Tariff Revisions to Sustain Investments
As the ARPU of Bharti Airtel hits Rs 233 in Q2 FY25, approaching the company’s short-term ARPU goal of Rs 250, Bharti Airtel’s Managing Director and CEO Gopal Vittal highlighted that the industry needs further tariff repairs for sustained investments. In the earnings statement on Monday, Vittal said that the company’s balance sheet remains solid, supported by cash generation and continued deleveraging. During the July-September quarter, Bharti Airtel reported that it prepaid another tranche of Rs 8,465 crore of high-cost spectrum dues.

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Need for Further Tariff Revisions

“At the same time, we believe that the industry needs further tariff repairs for sustained investments, given that ROCE (Returns on Capital Employed) for India is still only 11 percent,” Vittal said.

The telecom operator reported that its consolidated revenues for the July-September quarter reached Rs 41,473 crore, an increase of 12 percent year-on-year and 7.7 percent quarter-on-quarter. Mobile Services India revenues grew by 18.5 percent year-on-year, led by tariff increases coupled with a relentless focus on premiumizing the portfolio with quality customers.

Bharti Airtel asserted that it continues to deliver industry-leading Average Revenue Per User (ARPU) growth. The ARPU for the quarter stood at Rs 233, compared to Rs 203 in Q2 FY24.

The company reported that the increase in revenues was driven by tariff repairs, strong smartphone data customer additions, and improvements in the underlying mix.

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Network Enhancements

Airtel announced the rollout of approximately 5,000 additional towers and 15,200 mobile broadband stations in the quarter to enhance connectivity. Furthermore, Bharti Airtel said it turbocharged its networks with the deployment of additional spectrum acquired in key circles in June 2024. Airtel has added around 34,000 towers year-on-year.