Bharti Airtel, India’s No.2 telecom carrier by subscribers, has launched a new entry-level plan for Rs. 155 in seven regions, the company’s spokesman said Tuesday, effectively increasing base fares by nearly 57 percent.
The new plan was rolled out in regions including the states of Karnataka, Bihar and Rajasthan after the existing tariffs of Rs were discontinued. 99, the spokesman added.
The company rolled out the new plan on a trial basis in the states of Odisha and Haryana late last year.
Telecom companies were widely expected to hike tariffs to prop up revenues after spending billions of dollars on the country’s 5G auction last year.
Airtels Average revenue per user (ARPU), a key performance indicator for telecom companies, was Rs. 190 in the September quarter, up 3.8 percent sequentially and up about 24 percent year-on-year.
The ARPU had to be at Rs. 200 and ultimately at Rs. 300 for a financially sound business model, Airtel said in November 2021 when it last hiked tariffs.
Greater Rival trust jio, the telecom arm of billionaire Mukesh Ambani’s Reliance Industries, had an ARPU of Rs. 177.2 in the September quarter, rising slightly to Rs. 178.2 in the December quarter.
Jio, which shook the industry with discounted rates in 2016, hasn’t increased rates in over a year.
Airtel is expected to release its third-quarter results on February 7th.
© Thomson Reuters 2023
