Bharti will increase tariffs across prepaid plans by 20-25 per cent from November 26, saying average revenue per user (ARPU) needs to go up for a "financially healthy business model". The announcement led to shares of the telco touch a 52-week high in early trading hours.
“Bharti 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,” said the telco in an early morning statement on Monday.
Shares of the telco touched a 52-week high of Rs 755.60 in the morning trade and then hovered at Rs 752.75, up by 5.40 per cent on BSE on Monday morning.
The second largest operator has an ARPU of Rs 153 compared to rivals Jio’s Rs 144 and Vodafone Idea’s Rs 109
“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,” said the firm.
The new tariffs will come into effect from November 26, 2021.
The sector has been waiting for a tariff increase and soon Vi and Jio are expected to follow suit. The last hike was in December 2019.
“Bharti 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,” said the telco in an early morning statement on Monday.
Shares of the telco touched a 52-week high of Rs 755.60 in the morning trade and then hovered at Rs 752.75, up by 5.40 per cent on BSE on Monday morning.
The second largest operator has an ARPU of Rs 153 compared to rivals Jio’s Rs 144 and Vodafone Idea’s Rs 109
“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,” said the firm.
The new tariffs will come into effect from November 26, 2021.
The sector has been waiting for a tariff increase and soon Vi and Jio are expected to follow suit. The last hike was in December 2019.
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