Airtel hikes tariffs by 20%, says decision is for ‘financial health’
Bharti Airtel on Monday increased its tariffs for telecom subscribers for a range of services effective November 26, saying the decision was for a “financially healthy business model”.
The company hiked prepaid tariff by 20-25 per cent and data top-up plans by 20-21 per cent.
“”Bharti Airtel has always maintained that the mobile Average Revenue Per User (ARPU) needs to be at Rs 200 and ultimately at Rs 300, so as to provide a reasonable return on capital that allows for a financially healthy business model,” said the company in a statement, referring to the telecom industry’s measure of revenue generated from customers.
Sunil Bharti Mittal, chairman of Bharti Airtel, had said in August tariff hike was the only way forward for the telecom industry. “We have done our bit in a limited way, we have run out of patience and we can’t be an outlier all the time,” Mittal said after a company investor call.
Airtel’s statement this morning said the tariff hike would lead to “substantial investments” in infrastructure and help it in rolling out 5G spectrum in India.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
