Bharti Airtel announces 10-21% hike in mobile tariffs from July 3

Bharti Airtel said it has maintained that the mobile Average Revenue Per User (ARPU) needs to be upwards of $300, to enable a financially healthy business model for telcos in India.

A Bharti Airtel building is pictured in Gurugram on the outskirts of New Delhi. | Photo Credit: Reuters

Bharti Airtel on Friday, June 28, 2024, announced between 10-21 per cent hike in mobile tariffs, a day after larger rival Reliance Jio announced an increase in rates.

Airtel, in a release, said that the revision in mobile tariffs will be effective from July 3.

"We have ensured that there is a very modest price increase (less than 70 paise per day) on entry-level plans, in order to eliminate any burden on budget challenged consumers," the Sunil Mittal-led telecom firm said announcing the revision in mobile tariffs.

Bharti Airtel said it has maintained that the mobile Average Revenue Per User (ARPU) needs to be upwards of ₹300, to enable a financially healthy business model for telcos in India.

"We believe that this level of ARPU will enable the substantial investments required in network technology and spectrum and offer a modest return on capital," the telco said.

Among the unlimited voice plans, Airtel has raised tariffs in the ballpark range of about 11%, and accordingly rates are revised from ₹179 to ₹199; from ₹455 to ₹509; and from ₹1,799 to ₹1,999. In the daily data plan category, the ₹479 plan has been increased to ₹579 (20.8%).

The mobile tariff hike from mobile operators comes immediately after the 10th spectrum auction, which ended in just two days with muted response from the industry.