Telecom service provider Bharti Airtel on Monday said it has decided to increase its prepaid tariffs by 20 to 25 percent with effect from November 26, 2021. With this, the existing tariff of Rs 75 with validity period of 28 days will be hiked to Rs 99 while the existing tariff of Rs 149 with validity period of 28 days will be increased to Rs 179.
The other plans that have been increased include the existing tariff plan of Rs 219 with the validity of 28 days, which was hiked to Rs 265, the Rs 249 plan with the validity of 28 days, which was increased to Rs 299.
The existing tariff of Rs 298 with the validity of 28 days was hiked to Rs 359.
Toward the higher end, the existing tariff plan of Rs 2,498 with a validity period of 365 days was hiked to Rs 2,999.
With this tariff hike, Airtel's plans are now 30-50 percent premium to Jio.
Compared to Jio's 2 GB data plan for 28 days at Rs 129, Airtel's tariff is at Rs 179, while Jio's 1.5 GB/day for 84 days plan is priced at Rs 555, Airtel's plan is fixed at Rs 719.
"Bharti Airtel (“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," the company said in a statement.
"We also believe that this level of ARPU will enable the substantial investments required in networks and spectrum. Even more important, this will give Airtel the elbow room to roll out 5G in India."
"Therefore, as a first step, we are taking the lead in rebalancing our tariffs during the month of November. Accordingly, our new tariffs as indicated below will come into effect from November 26, 2021."
On the development, Axis securities said, "Bharti tariff hike has been higher than expectations. Bharti Airtel has taken the lead and hiked prices quite significantly. ARPU of Rs 200 is achievable in the near term for Bharti. The tarriff hike by Bharti is positive for entire indystry, hikes are sustainable."
Bharti Airtel CEO Gopal Vittal earlier this month had said that the company needed to raise its average revenue per user (ARPU) to Rs 200 in the near term and Rs 300 in the long term.
First Published: IST