After Jio, Bharti Airtel announces a 10-21 percent hike in mobile tariffs from July 3

Digital Desk: Bharti Airtel, India’s second-largest telecom operator, has followed in the footsteps of Reliance Jio by announcing a hike in mobile tariffs across various plans. This decision comes amidst efforts to bolster Average Revenue per User (ARPU) and maintain a sustainable business model in the competitive telecom sector.

From July 3, 2024, Airtel will implement price revisions ranging from 10% to 21% on its mobile plans. The telecom giant emphasized that the increase, averaging less than 70 paise per day on entry-level plans, aims to minimize the impact on budget-conscious consumers.

In specifics, Airtel’s unlimited voice plans will see increases from Rs 179 to Rs 199, Rs 455 to Rs 599, and Rs 1,799 to Rs 1,999, as outlined in their regulatory filing. The move is part of Airtel’s strategy to achieve a minimum ARPU of Rs 300, which is considered crucial for sustaining profitability and investment in network expansion and 5G deployment.

This adjustment follows a similar move by Reliance Jio, which recently announced a 12-25% tariff hike across its prepaid and postpaid offerings. Jio’s decision is expected to elevate its ARPU, which has plateaued around Rs 181.7 in recent quarters, despite substantial market share.

The tariff revisions coincide with the conclusion of India’s telecom spectrum auction, where Bharti Airtel emerged as the highest bidder, committing Rs 6,856 crore for 97 MHz of spectrum. In contrast, Reliance Jio secured 14.4 MHz spectrum for Rs 973 crore, underscoring the strategic importance of spectrum acquisition in advancing 5G capabilities.

Over the years, India has witnessed one of the lowest telecom ARPU rates globally, prompting operators to seek sustainable pricing models. The recent spectrum auction and subsequent tariff adjustments indicate a pivotal phase for the telecom industry as it prepares for the imminent rollout of 5G technology.

As consumers brace for higher mobile bills, industry experts anticipate these measures will pave the way for enhanced network quality, expanded coverage, and improved service delivery, which is essential for meeting escalating data demands and digital connectivity needs in India.