Bharti Airtel raises tariffs by 10% - 21%

28 Jun 2024 , 01:13 PM

Bharti Airtel, India’s second largest telecom operator, has announced a 10-21% hike in mobile tariffs, following a similar move by Reliance Jio. The revised tariffs, effective from 3 July 2024, will see an increase of less than 70 paise per day on entry-level plans.

Bharti Airtel emphasized the necessity of increasing Average Revenue per User (ARPU) to above ₹300 for sustainable telecom business growth in India.

They stated that achieving this ARPU level would support substantial investments in network technology and spectrum, ensuring a modest return on capital.

Bharti Airtel welcomed the industry’s move towards tariff repair, reflecting broader consensus among telecom firms in India.

Reliance Jio recently announced new unlimited plans, ranging from ₹189 to ₹3,599, effective from the same date, offering unlimited 5G data for plans with 2GB/day and above.

Both Bharti Airtel and Vodafone Idea were expected to follow suit with tariff revisions, echoing the industry’s long-standing advocacy for sustainable growth through tariff increases.

Bharti Airtel’s Chairman, Sunil Mittal, has stressed the need to increase ARPU from ₹200 to ₹300 or more, marking a strategic shift for the telecom giant. Industry-wide tariff hikes occurred in December 2021 and December 2019, increasing ARPU and supporting telecom sector viability amid evolving market dynamics.