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Bharti Airtel, India’s second-largest telecom operator, has joined Reliance Jio in raising mobile service tariffs hike. Airtel’s hike ranges from 10% to 21%, effective July 3rd, 2024.
This move follows Jio’s announcement earlier this week, which saw price increases of 12% to 25% on their plans. Both companies say the hikes are necessary to improve the financial health of the telecom sector in India.
- Airtel mobile tariffs hike by 10-21%.
- The increase follows a similar move by Reliance Jio.
- Entry-level plans to see a modest increase of less than 70 paise per day.
- Airtel believes Average Revenue per User (ARPU) needs to be over Rs 300 for a sustainable industry.
- The hike will allow for investments in network technology and spectrum.
Telecom companies in India have long called for tariff increases to cover rising operational costs and invest in 5G infrastructure. Airtel argues that the current ARPU of around Rs 200 needs to reach Rs 300 or more to ensure a healthy industry.
This move comes after Airtel’s ARPU finally crossed Rs 200 in Q3 FY24. It remains to be seen if Vodafone Idea, the other major telecom player, will follow suit with their tariff hikes.
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