Bharti Airtel Announces Steep Hike In Mobile Tariffs

On Friday, Bharti Airtel, one of India’s leading telecom operators, disclosed plans to increase mobile tariffs across various segments, starting 3 July.

The company revised the tariffs to boost its average revenue per user (ARPU) and to support substantial investments in network infrastructure and spectrum.

In the realm of prepaid unlimited voice plans, Bharti Airtel has adjusted rates as follows: the Rs 179 plan will now cost Rs 199, the Rs 455 plan will increase to Rs 599, and the Rs 1,799 plan will rise to Rs 1,999.

Similarly, for postpaid plans, the Rs 399 tariff plan will adjust to Rs 449, the Rs 499 plan will increase to Rs 549, the Rs 599 plan will now price at Rs 699, and the Rs 999 plan will see a hike to Rs 1,199.

Meanwhile, the decision comes amidst Bharti Airtel’s commitment to maintaining an ARPU threshold above Rs 300, crucial for sustaining a financially robust telecom ecosystem in India.

The company however emphasized that achieving this ARPU level is essential to funding network technology upgrades and spectrum investments, while also ensuring a reasonable return on capital.

In a statement, Bharti Airtel stated, “We believe that this level of ARPU will enable the substantial investments required in network technology and spectrum and offer a modest return on capital.”

The announcement follows a similar move by Reliance Jio, which recently implemented a 12-27% increase in mobile tariffs, reflecting broader industry trends towards tariff adjustments aimed at financial sustainability.

Following the announcement, Bharti Airtel’s shares showed a positive response, increasing by approximately 1% in early morning trading to Rs 1,491 apiece.

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