Bharti Airtel Plans to Increase Call and Internet Costs This Year
Bharti Airtel, a major Indian telecommunications company, has announced its plans to raise call and internet costs for mobile phone plans across all tariffs this year. The company’s chairman, Sunil Bharti Mittal, confirmed the news during the Mobile World Congress, stating that the tariff increase is necessary due to the industry’s relatively poor return on capital.
Last month, the company raised the minimum recharge for its 28-day mobile phone service plan by 57% in eight circles to Rs 155. While questioned about the need for the tariff hike given the company’s strong financial position, Mittal emphasized the need to improve the company’s return on capital.
Mittal remarked that the price increase would happen across the board and that the company’s investment in strengthening the balance sheet would require modest adjustments to the tariff situation in India. He further explained that the price hikes would have a minimal impact on consumers compared to the increase in rents and salaries.
Although Airtel has discontinued its Rs 99 minimum recharge package, the company aims to achieve a 200 rupee short-term average revenue per user (ARPU) and a 300 rupee medium- to long-term ARPU goal through sustainable pricing increases for future operations.
The company believes that India needs a strong telecommunications firm to support the country’s digital growth and economic prosperity, and everyone, including the government, the regulator, and the public, is highly aware of this.Facebook or follow us on Twitter and Instagram. Subscribe us on Telegram and never miss a update!
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