Bharti Airtel, India’s second-largest telecom operator, has announced a mobile tariff increase of 10-21%, following a similar move by Reliance Jio. The revised tariffs, effective from July 3, 2024, will see “very modest” price hikes, amounting to less than 70 paise per day on entry-level plans.
The telecom firm emphasized the need for Average Revenue Per User (ARPU) to surpass Rs 300 to sustain the financial health of telecom businesses in India. Bharti Airtel welcomed the industry-wide initiative to adjust tariffs, citing it as essential for making substantial investments in network technology and spectrum while ensuring a modest return on capital.
Earlier this week, Reliance Jio introduced new unlimited plans starting July 3, ranging from Rs 189 for 2 GB per month to Rs 3,599 for a 2.5 GB per day annual plan, all including unlimited 5G data for plans with 2GB/day and above. Following these developments, revisions in mobile tariffs from Bharti Airtel and Vodafone Idea were widely anticipated, reflecting a long-standing advocacy among telecom firms for tariff increases to support sustainable growth.
Bharti Airtel’s Chairman, Sunil Mittal, reiterated the goal to increase ARPU from approximately Rs 200 to Rs 300, marking a significant milestone after several years of incremental increases. The telecom industry last witnessed a 20% tariff hike in December 2021, preceded by a similar adjustment in December 2019, which was the first since Jio’s launch in 2016.
