Telecom operators in India are struggling a lot when it comes to the financial aspect. A lot has been said about the Indian telecom industry over the last six months, but telcos are trying their best to provide services during these tough times. And to improve their financial stability, telcos will have to increase the tariff prices. The last tariff hike which happened in December 2019 had a very positive impact on ARPU of Bharti Airtel. But the former leading telecom operator is not stopping yet. Sunil Mittal of Bharti Airtel now opined that a new tariff hike should happen in the next six months so that the ARPU will increase further. As we already know, Bharti Airtel is eyeing for an ARPU or Average Revenue per User of Rs 300 in the near future.
Airtel Eyes at Achieving Rs 300 ARPU in the Future
The entry of Reliance Jio shattered the Indian telecom market. Jio is now the leading telecom operator in terms of subscriber base, but Airtel is leading the ARPU front as it is focussing heavily on revenue-generating customers. Speaking to PTI, Sunil Bharti Mittal said that the current data prices in India are not sustainable, not only for Airtel but for the entire telecom industry. Mittal stated that the consumption of 16GB data a month for just Rs 160 is a tragedy.
"You either consume 1.6GB of capacity per month either at this price point or you may prepare to pay a lot more. We are not wanting $50-60 like the U.S. or Europe but certainly $2 for 16GB a month is not sustainable," Mittal said at an event, as reported by PTI.
Bharti Airtel reported Rs 157 ARPU in Q1 FY21 and it is the only telco with an ARPU of Rs 150 in India right now. Mittal expects the ARPU of Bharti Airtel to cross Rs 200 in the next six months, owing to digital content consumption. The addition of prepaid plans with Disney+ Hotstar VIP subscription will further boost the ARPU of Airtel.
Furthermore, Airtel is also trying to achieve Rs 300 ARPU in the coming quarters, but that will depend on the impact of the tariff hike, which is expected to happen in the next six months.