Another Tariff Hike Should Happen in Next 6 Months: Sunil Mittal

Bharti Airtel, one of the telecommunications conglomerates is likely to introduce a new tariff hike in the next 6 months. Sunil Mittal, the Chairperson of Bharti Airtel made this announcement at an event. As per the latest announcement, the company might bring an ascending modification in the prices of mobile services in the subsequent 6 months. The chairperson further stated that the low data prices are not supportable for the telecommunications sector. 

Bharti Airtel’s chairperson said ’16 GB data consumption a month for Rs 160 is a tragedy.’ Mittal further mentioned that the consumers must acquire 1.6 GB data at this price range or needs to be fully prepared to pay out much more. During the event, he further pointed out that, ‘You either consume 1.6 GB of capacity per month either at this price point or you may prepare to pay a lot more. We are not wanting USD 50-60 like the US or Europe but certainly USD 2 for 16 GB a month is not sustainable.’

Another Tariff Hike Should Happen in Next 6 Months: Sunil Mittal
Another Tariff Hike Should Happen in Next 6 Months: Sunil Mittal

Previously, the tariff hike was made in December 2019 and this hike had shown a favorable impact on ARPU of Bharti Airtel. According to the perception of Bharti Airtel chairperson, the new tariff hike should be implemented in the next 6 months that eventually increase the ARPU. It is well known that the company is seeking for an Average Revenue per User of Rs. 300 in the imminent future.

In the first quarter ending of the year i.e., 30th June 2020, the telecom behemoth has witnessed a hike in the average revenue per user [ARPU] to Rs. 157. As per the report, Mittal said that at the minimal end, Airtel subscribers must pay at least Rs. 100 per month. With the entry of Reliance Jio into the Indian telecom sector, a massive influence has been shown on the existing telecom companies.  

As of now, Jio is the superior telecom company in the country with the largest subscriber base. Still, Airtel is in the first place in terms of ARPU. The reason is that Airtel has been majorly emphasizing on revenue-generating customers. Mittal anticipates the ARPU of Bharti Airtel to surpass Rs. 200 in the subsequent 6 months, because of the digital content consumption. As per the report, the prepaid plans of Airtel might include Disney+ Hotstar VIP subscription. With this move, the APRU of the company will eventually increase.

In addition to this, Bharti Airtel is also striving hard to accomplish Rs. 300 ARPU in the next quarters. However, it relies on the tariff hike influence which is anticipated to happen in the next six months. On the other hand, the company has been progressively rolling out new recharge plans and vouchers to its prepaid subscriber base in the nation. 

In the previous week, the company has announced 2 new recharge plans for the prepaid subscribers in India. The new plans include Rs. 448 and Rs. 599 which are now available to purchase on the official website of Airtel. The two newly launched prepaid recharge plans provide calling benefits, daily internet quota, and free Disney+ Hotstar VIP subscription to the users.

Stay tuned to this website to get the latest updates about the upcoming recharge plans and tariff hikes of various telecom operators in India. 

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