Speaking at the Mobile World Congress 2023, Barcelona, Sunil Mittal, Chairman of Bharti Airtel, said he is hopeful of tariff hikes in the telecom industry in the middle of this year (2023). Bharti Airtel has been gradually phasing out Rs 99 Plan across its circles, and now the Rs 155 plan is the entry-level plan across 19 telecom circles.
The return on capital in this industry is very low. That needs to change. We are talking of small increments that need to come in the Indian tariff situation. I hope half (by mid) of this year," Mittal said at the Mobile World Congress in Barcelona.
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Airtel Prepaid Plan Rs 99
Airtel Rs 99 prepaid recharge used to offer customers with 200 MB data and calls at the rate of Rs 2.5 paise per second with 28 days validity.
Airtel Prepaid Plan Rs 155
Airtel Plan Rs 155 offers customers with Unlimited Local, STD and Roaming minutes, 1 GB of Data, and 300 SMS with a validity of 24 days. In addition, users also get to enjoy other benefits, such as Wynk Music and Free Hellotunes.
Sunil Mittal further said the tariff hikes are low compared to people's spending on other items. He further added Indian Telecom Industry does not want to have more Vodafone Idea-type scenarios, as per a PTI Report.
"We need a robust telecom company in the country. The dream of India is digital, economic growth is fully realised. I think the government is fully conscious, the regulator is conscious, and people are also very conscious," he said.
Also Read: Airtel Rs 155 Plan: What Are the Benefits Offered?
Bharti Airtel's chairman also disagreed with the notion that tariff hikes are impacting the people at the bottom of the pyramid.
Last week, Bharti Airtel removed its Rs 99 prepaid plan from two more circles - Maharashtra and Kerala - making Rs 155 the new entry-level plan in these circles. The remaining three circles that are yet to see a price hike from Bharti Airtel are Kolkata, Gujarat and Madhya Pradesh.
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Speaking at the MWC23, Mittal also said that Bharti Airtel has a healthy balance sheet, and there is no need to raise any more capital. Sunil Mittal has often highlighted Bharti Airtel's plans to achieve a long-term ARPU target of Rs 300 for a sustainable business model for the investments involved.
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Bolstered by tariff hikes and organic growth, Bharti Airtel's Mobile Average Revenue per User (ARPU) increased to Rs 193 in Q3FY23 as against Rs 163 in Q3FY22. Airtel on Monday announced that it has crossed 10 Million Unique users on its 5G Network, and its 5G services are available in 141 cities.
