Bharti Airtel has announced an increase in tariffs for all its prepaid and postpaid users starting July 3. This follows a similar hike by rival Reliance Jio, which raised its rates by 12-15%. The primary goal of these changes is to improve the average revenue per user (ARPU).
Airtel’s New Tariff Announcement
On Friday, Bharti Airtel announced that it will raise tariffs for all its prepaid and postpaid users starting July 3. This decision aims to boost the company’s average revenue per user (ARPU), coming just a day after Reliance Jio implemented a similar rate increase of 12-15%.
Focus on ARPU
Bharti Airtel has consistently emphasized the need for a mobile ARPU of INR 300 to maintain a financially healthy business model for telecom operators in India. The company believes that achieving this ARPU level is crucial for supporting the significant investments required in network technology and infrastructure.
Justification for Tariff Hikes
The tariff hikes are essential for sustaining the ongoing development and enhancement of telecom infrastructure. By increasing the ARPU, Airtel aims to ensure it can continue to invest in advanced network technologies, providing better services and connectivity to its users.
Impact on Users
Starting July 3, Airtel’s prepaid and postpaid users will see an 11-21% increase in their tariffs. This adjustment is part of Airtel’s strategy to align with industry standards and ensure long-term sustainability in the competitive telecom market.
As Airtel follows Jio in raising tariffs, users can expect improved services and network quality driven by the increased ARPU. This move underscores the telecom industry’s ongoing efforts to balance competitive pricing with the need for substantial infrastructure investments.
