Airtel Targeting Higher ARPU of Rs 300, Another Tariff Hike Around the Corner
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…
After reaching 300 arpu , Mittal will think for 500 . There is no end to craving , for earning more.
Already Airtel has expanded to srilanka , Bangladesh & many African countries through 2g profits of India.
Nothing wrong in it . It is their earned money & are free to diversify . But then , this diversion of India's 2g profits have delayed india's technology advancement & exposed the incumbents of their short comings , with jio entry in 2016.
Now these old telcos doing bulk investments to catch up & as a result their debts have increased manifold. Hence interest cost has increased & profits are draining . All money going to banks.
Asking for more money from Indian consumers is wrong.
Jio is already earning net profit @16% with high debt & current pricing. As per Jio results yesterday , their revenues for the first quarter are 16600 crores & net profit at 2520 crores.
Jio has sold part stake in June & is now almost debt free.
From July , jio will be saving minimal 1200 crores per month as bank interest , which will directly add into their profits. They are expected to make profits over 5000 to 6000 crores per quarter , with a net margin of 35% .
On the other hand, these over burdened telcos asking for floor price from the government & price increase.
I think it is black mail. Money has been siphoned by them into different fields & hence are lacking .
Jio will follow these telcos in increasing price as it will not mind earning even higher returns .
If this operator raises prices exhorbantly then I will switch to jio or bsnl. Ultimately all these telcos are data pipe over wireless and I don't have to do speed test over my phone that I need 50 to 100mbps . For me 5 to 10mbps is ok to surf and download. Let them go and prioritise traffic for people who would afford them. For me it doesn't give value for money on Airtel post tarrif hike
Mr. Pintu, it is because of Ambani that lot of media content is available to consume over mobile. Every content provider wants to set up its business in india. You and me are connected far better than previous times. Stop whining and start enjoying what is available today.
Ambani burnt his pocket to service us all this while. Even if he enjoys clout with govt then what is the harm, we the citizen are benefiting . Vil and many other companies died due to their own business decision and not due to Ambani.
This guys Chetan is spot on when he speaks about airtel and vil. Poor guy pounced by leachers
airtel lost its charm. Its now slave to Jio. Watever Jio does, it just follows it.
It looted the customers money when it was in peak. The best and hard hitting karma for airtel brand as a whole.
WITH THE QUALITY OF SERVICES THESE TELECOM PROVIDERS ARE GIVING...THEY SHOULD RATHER DECREASE THE PRICES OR COMPENSATE THE USERS FOR CALL DROPS AND PATHETIC DATA SPEEDS
Again same question
When this airtels akashwani going to be true > ARPU of 300????
Airtel already showing its Network or i would Premium subsciber telco. Higher minutes of usage, More ARPU.
Let Airtel make better use of Its Branded store and retailers. They can introduce wide variety of postpaid plans from 199-1599 to suit user, and increse postpaid subsciber which are relatiely stable, and make Auto-pay via UPI through its airtel payment back, to remove hassle of paying bill.
Not every subsciber need bunch of data 75-200Gb. Some needs more internatiola roaming, some need more VAs like netflix, othey may be simple voice user with home/office brandband or some are just tethering for their laptop/tablet.
True. Airtel is Chortel.
There's a saying... Once a thief, always a thief. So that's why Jio is there to stop them. Thank God for Jio!
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 curse BSNL and jio too much (than you did for airtel) if they increase the calling pack price.
If Aircel was there in Tamilnadu in good condition, even jio would think twice before increasing the calling pack price.
What will you do if jio and BSNL also increase the calling pack price?. I am sure you will say 'I (you) will switch to airtel or vodafone'. Lol. Monkey minded.
One request. Please stop adding the caste name after your name.
As if other operators are giving true 3G and 4G speed to each and every user most of the time !!!.
@Pintu Das aur ekdin tum log bangal me alur chop banaoge aur crore rupaya kamaoge 🤣🤣🤣
I like this thamilan daa guy. Very funny guy..
So If jio and bsnl also raise tariffs then I will start using landline which is lying idle with my broadband connection. Will go out of house without mobile phone. No tension . People in older days used to manage when there was no mobile phones. I will also manage same way.
Hope my answer is good enough for your funny Q!
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.
Please stop making the same statement in every post..
We agree no one is giving true 2G, 3G or 4G speed anywhere in the world..
Theoretical speed is are achieved on a single device, so it is never possible for everyone to get that speed. Practice speed will always be 50% less than it.
Kiran - Mittal's statement in September October last year before increase by all Telco's was that they needed arpu of 200 & now they are nearing to the 200 arpu target ,they yesterday said are looking forward for 300 arpu.
It is very clear , if Jio would have not entered the market , then GB cost would have increased further from 250 per GB to 400 -500 per GB.
Airtel would have earned huge & further would have expanded to many foreign countries.
Mittal wants Airtel to be a world's leading telecom brand , Having world presence like Vodafone .
Secondly , when Airtel , voda & idea were ruling Indian market from 2006 to 2016 . Even that time Mittal had a habit of working like a cartel.
All three top.operators of market having over 80% revenue share & own leadership circles. They would never enter each others territory . It was like working from common board room .
All three having same plans & always no change in their market share. None would challenge each other .
There was no competition between three. It seemed like systematic loot.
Jio is now kabaab me haddi . Mittal is trying for Jio to join the group .
Whatever agr penalty , are to be paid is because of cartel arrogance & confidence that they would black mail the government & take favours . Jio spoiled the party with entry in 2016.
Jio entry made the government strong & avoid case weak. They could not black mail the government after loosing in court.
Surely avoid , would have blackmail the government that they will shut & will not pay agr penalty..
Government would have been under tremendous pressure to let go the dues.
But Kunal current ARPUs are definitely very low. Mittal logic is correct that return on capital invested is not faovrable... I am not supporting airtel but this is the fact. More over sudden windfall penalities like AGR etc is making it more unfavorable. That is the reason you see KMB and vodafone saying we will not invest further...
Airtel might talk of 200 and 300 ARPU but they are not able to sustain even 157 also. Because it is being expensive, lot of people surrendered their airtel postpaid /prepaid connection in March, April months. Just 7%increase in ARPU from 153 to 157 . So it's not easy for airtel that is why you see they are begging tor reduction of levies and disputed dues so that they can atleast breathe . Jio is not letting them breathe, avoid increases tarrif and then lower segment consolidate their sim and move to jio or bsnl. So all ARPU hike goes for a toss.
Chetan - if AGR would have been not there , then the current pricing range is good enough.
Jio is earning 16% net profit in current pricing that too when total increase price's of December have not factored in for Jio due to long term plans of consumers. Jio arpu set to further rise to 147 from present 140.
AGR problem created by avoid cartel in arrogance & over confidence.
Actual basic amount is 25 % & they are now paying four times in penalty & interest , which will be collected from consumers.
They knew that were fighting a loosing battle with the government.
All the while , all Telco's were well aware of the penalty figure rising. It was a ticking time bomb.
They should have at least paid dues in protest & then claim refund with interest from government.
All Telco's were making good profits during that period . They could have paid basic amount & saved income tax too.
Rules are clearly defined . Courts have only implemented , the penalties & interest provisions as mentioned in the rule books.
Now avoid looking to recover agr money from us.
Yes I know, Airtel's cartelization is his cunning agenda to avoid getting people suspicious, as people get crazy when there's one dominant player, but could care less when it's 3 or more dominant players in the market.
I know how they were working back in the day. Airtel could control most of North India. Idea too had major control over MP, Goa, and Karnataka. Vodafone had control in Mumbai and some of Maharashtra, etc. It's as you said. "Systematic loot"
I'm glad they have this huge AGR issue. They've definitely been transferring the money earned, to offshore banks. Jio's entry to stop the corrupt cartel was a success! I hope Jio continues to shower us with goodies in the near future.
Oh, and I'm glad that Rajan Matthews was gone. He was their mastermind. The new guy from Jio in the COAI will definitely help a lot!
Faraz, according to Sudhakar aka Thamilian Baa, there's no such thing as load. He believes it doesn't exist.
Also 6G promises 1000 Gbit/s speed..
I just hope you don't ever believe that you are going to get that on your smartphone @Sudhakar.
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.