Even though Airtel, Reliance Jio, and Vodafone-Idea have been expanding their prepaid plan portfolio, the telecom sector is under pressure. Notably, India's third-largest telecom operator Vi has posted a loss of Rs. 7,022.8 crores in the last quarter of the last financial year.
However, the telecom industry is looking for the Government's support and believes that it (Government) will take steps to improve the situation of the sector.
"To say the telecom industry is in a bit of trouble is an understatement. It is in a tremendous amount of stress. I hope the government, the authorities, and the telecom department focus on this issue and ensure India's digital dream remains intact through the provision of at least three operators," Bharti Airtel chairman Sunil Mittal said.
He said that he has no idea what action the Government will take but hopeful that it will. These comments come soon after Vi announced posted loss in Q4 and its concerns related to fundraising.
Airtel Likely To Increase Tariff Prices
Mittal said that mobile tariffs should go up and then, Airtel will increase the prices. "Industry ARPU at around Rs 130 is way below the pre-JioRs 220-230 levels and is totally unsustainable, but any decision to raise tariffs can't be unilateral since Airtel is already at premium pricing...so we have to be mindful of the market, but the market repair has to take place," he added.
Airtel Wants Industry To Implement Old Tariffs
He added that that the industry is not planning to increase prices massively. Mittal also suggested that customers who are paying Rs. 250 to Rs. 300 can afford to pay Rs. 350 and Rs. 400 for the packs. Furthermore, he wants the industry to bring back the old tariffs.
On the other hand, analysts believe that there will be no hike as Reliance Jio is all set to bring the JioPhone Next in September this year.
The JioPhone Next smartphone is specially designed for first-time buyers and those who are looking for upgrading from feature phones to smartphones. This is why we also believe that none of the telecom operators will raise tariffs soon.