Bharti Airtel Announces 10-21% Mobile Tariff Hike Effective July 3
Bharti Airtel stated that it has consistently maintained that the mobile Average Revenue Per User (ARPU) needs to exceed Rs 300 to ensure a financially healthy business model for telecom companies in India.
On Friday, Bharti Airtel announced a 10-21% increase in mobile tariffs, following a similar rate hike by its larger rival, Reliance Jio, the day before. Airtel stated in a release that the revised mobile tariffs will take effect from July 3.
Announcing the revision in mobile tariffs, the Sunil Mittal-led telecom firm stated, "We have ensured that the price increase on entry-level plans is very modest (less than 70 paise per day) to minimize any burden on budget-conscious consumers." Bharti Airtel also reiterated that the mobile Average Revenue Per User (ARPU) needs to be above Rs 300 to support a financially healthy business model for telecom companies in India.
"We believe that this level of ARPU will enable the substantial investments required in network technology and spectrum while offering a modest return on capital," the telecom company stated.
Among the unlimited voice plans, Airtel has increased tariffs by approximately 11%, with rates revised from Rs 179 to Rs 199, from Rs 455 to Rs 509, and from Rs 1,799 to Rs 1,999. In the daily data plan category, the Rs 479 plan has been increased to Rs 579, reflecting a 20.8% increase.
This mobile tariff hike from operators follows the 10th spectrum auction, which concluded in just two days with a muted response from the industry.
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