Synopsis: Bharti Airtel has announced a modest increase in mobile tariffs from July 3, following a similar move by Reliance Jio. The increase, less than 70 paise per day for entry-level plans, aims to minimize the impact on budget-conscious consumers. Airtel's tariffs will rise by 10-21 percent, and the changes are expected to boost the company's Average Revenue per User (ARPU).
Sunil Bharti Mittal’s telecom firm announced that it will revise mobile tariffs from July 3, introducing a ‘very modest’ price increase of less than 70 paise per day on entry-level plans.
Bharti Airtel, the country’s second-largest telecom operator, has revealed a tariff hike just a day after Reliance Jio raised its tariffs.
Airtel will increase its plans by 10-21 percent.
The company stated that the mobile tariff revision from July 3 will include a ‘very modest’ price increase of less than 70 paise per day on entry-level plans, aiming to minimize the burden on budget-conscious consumers.
In a regulatory filing, Bharti Airtel confirmed, “Airtel will also revise its mobile tariffs from July 3, 2024. We have ensured that the price increase is very modest (less than 70 paise per day) on entry-level plans to avoid burdening budget-challenged consumers.”
For unlimited voice plans, Airtel has raised tariffs from Rs. 179 to Rs. 199, from Rs. 455 to Rs. 599, and from Rs. 1,799 to Rs. 1,999.
Bharti Airtel emphasized that the mobile Average Revenue per User (ARPU) needs to be above Rs. 300 to sustain a financially healthy business model for telcos in India.
On June 28, market leader Reliance Jio announced a 12-25 percent rise in tariffs for all mobile plans across prepaid and postpaid segments, aiming to boost its monthly ARPU, which had stagnated at Rs. 181.7 for three quarters until March 2024.
Additionally, Jio has restricted access to unlimited free 5G services for customers. The tariff hike follows the recent spectrum auction, as anticipated by sector experts.
India’s telecom ARPU has historically been among the lowest in the world.
In the latest telecom spectrum auction, which concluded on June 27, Bharti Airtel topped the buyers’ list with bids worth Rs. 6,856 crore for 97 MHz spectrum, while Reliance Jio acquired 14.4 MHz spectrum for Rs. 973 crore.
Vodafone Idea (Vi) purchased 50 MHz of spectrum with a total commitment of Rs. 3,510 crore.
In conclusion, Bharti Airtel has announced a revision in mobile tariffs starting July 3, with a modest increase primarily affecting entry-level plans.
This move follows Reliance Jio's recent tariff hike, reflecting a broader trend in the telecom industry to enhance Average Revenue per User (ARPU) and ensure financial viability.
Despite these changes, Airtel aims to minimize the impact on budget-conscious consumers while addressing the industry's need for sustainable revenue growth.
The recent spectrum auction further underscores the competitive landscape, with Airtel making significant investments to bolster its network capabilities.
