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Airtel Tariff Hike: Airtel raises tariffs, others could follow | India Business News


NEW DELHI: Your mobile tariffs are set to go up. Bharti Airtel, one of the country’s oldest mobile operator, will be increasing tariffs for pre-paid customers by up 20-25% from November 26, signalling hardening of tariffs as companies look at ways to shore up profitability ahead of new investments in 5G and telecom network. Tariffs for post-paid customers may also go up further after some changes made recently.
Airtel said that the move will help it raise mobile Average Revenue Per User (ARPU) – a key yardstick to measure profitability of mobile companies- to “Rs 200 and ultimately at Rs 300 so as to provide a reasonable return on capital that allows for a financially healthy business model.”
“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,” the company said.
Other operators, especially the financially-stretched Vodafone Idea, are likely to follow suit.
However, as companies raise tariffs, the focus will again shift on the quality of services that have generally lagged the break-neck speed at which the Indian telecom sector has grown over the past few years.
Airtel has raised the minimum voice tariff plan from Rs 79 to Rs 99, while making changes to other pre-paid voice and data bundled plans.

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