New Delhi: Indian multinational telecommunications services company Airtel will increase prepaid plans' prices by 20% to 25% starting November 26.
To boost its Average Revenue Per User (ARPU), Airtel decided to upgrade its popular prepaid plans.
The base prepaid Airtel plan will begin at Rs 99 with a validity of 28 days after the tariff hike. The base plan with the same benefits is currently available at Rs 75.
Airtel subscribers will have to spend at least Rs 50 extra for popular monthly plans. At the same time, spending Rs 479 and Rs 455 for plans with 56 days and 84 days validity.
The company will additionally increase the price of top-up data plans. The current tariff of Rs 48 is increased to Rs 58. Whereas, the Rs 98 and Rs 251 top-ups are raised to Rs 118 and Rs 301 each.
From November 26, the prepaid plan of Rs 75 with a validity term of 28 days is will rise to Rs 99. Airtel prepaid plan of Rs 149 will soon cost Rs 179. The Rs 219 Airtel plan will cost Rs 265.
At the same time, the Rs 249 and Rs 298 prepaid plans will soon cost Rs 299 and Rs 359, respectively.
"Bharti Airtel has always maintained that the Average mobile Revenue Per User (ARPU) needs to be at ₹200 and ultimately at ₹300, to provide a reasonable return on capital that allows for a financially healthy business model," Airtel said in a statement.
"Therefore, as a first step, we are taking the lead in rebalancing our tariffs during November. Accordingly, our new tariffs as indicated below will come into effect from November 26, 2021," the company added.
Shortly after the announcement, Airtel's share price was up by over 5%. The stock was exchanging at ₹753.75 at 9:30 a.m. on November 22.