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Bharti Airtel said on Monday that it is hiking its tariffs by 20 to 25% for its various prepaid offerings. This includes various prepaid offering, tariffed voice plans, unlimited voice bundles and data top-ups.
Airtel to launch 5G leveraging the hike
The telecom operator has always maintained its Average Revenue Per User (ARPU) of the mobile needs to be at Rs 200 and ultimately at Rs 300, which would enable them to get a reasonable return on capital that allows for a financially healthy business model, it said.
For the entry-level tariffed voice plan the hike is about 25%, while the increase in most cases has been about 20% for unlimited voice bundles.
In a statement, the company said that, it believes that it will be able to generate substantial investments required in networks and spectrum at the estimated levels of ARPU. This will also give the telco an elbow room to launch 5G in India, it added.
It further said that it is leading from the front in rebalancing tariffs in the month of November. The new tariffs will come into effect from November 26, 2021.
The new rate in the tariffed voice plans is Rs 99 as compared to Rs 79 with 28 days vaildity and benefits such as 50% more talktime worth Rs 99,200 MB data, 1p per second voice tariff.