Telecom operators in India are struggling a lot from a financial point of view. Much has been said about the Indian telecommunications industry over the last six months, but the telecommunications companies are trying their best to provide services in these difficult times. In order to improve their financial stability, telecommunications will have to increase tariff prices. The last increase in tariffs that occurred in December 2019 had a very positive impact on Bharti Airtel’s ARPU. But the former leading telecommunications operator has not yet stopped. Sunil Mittal of Bharti Airtel now argued that a new rate increase should take place in the next six months to further increase the ARPU. As we already know, Bharti Airtel is looking for an ARPU or an Average Revenue per user of Rs 300 in the near future.
Airtel Eyes on Achieving Rs 300 ARPU in the Future
The entry of Reliance Jio shattered the Indian telecommunications market. Jio is now the leading telecommunications operator in terms of subscriber base, but Airtel is leading the ARPU front as it focuses heavily on revenue-generating customers. Speaking to PTI, Sunil Bharti Mittal said that the current data prices in India are not sustainable, not just for Airtel, but for the entire telecommunications industry. Mittal claimed that the consumption of 16 GB data per month for only Rs 160 was a tragedy.
“Only at this price point you use 1.6 GB of bandwidth per month, or you can expect to pay a lot more. We don’t want $50-60 like the U.S. or Europe, but certainly $2 for 16 GB per month isn’t sustainable, “Mittal said at the event, as reported by PTI.
Bharti Airtel reported Rs 157 ARPU in Q1 FY21 and is currently the only Rs 150 ARPU telco in India. Mittal expects Bharti Airtel’s ARPU to cross Rs 200 over the next six months due to digital content consumption. The addition of prepaid plans with Disney+ Hotstar VIP subscription will further boost Airtel’s ARPU.
In addition, Airtel is also aiming to reach Rs 300 ARPU in the forthcoming quarters, but this will depend on the effect of the tariff hike that is expected to occur in the coming six months.