Bharti Airtel will be increasing the prepaid mobile tariffs by around 20 per cent-25 per cent from 26 November, 2021 in order to enhance its average revenue per user (ARPU), while also bring about substantial investments as it plans to roll out its 5G network in the country.
Bharti Airtel has an ARPU of Rs 153 currently and its new 28-day prepaid package with 1 GB data per day will cost Rs 265, up by Rs 46 from Rs 219 previously. Other telecom operators Jio and Vi are likely to follow with their own rate hikes.
“Bharti Airtel has always maintained that the mobile Average Revenue Per User (ARPU) needs to be at Rs 200 and ultimately at Rs 300, so as to provide a reasonable return on capital that allows for a financially healthy business mode,” the company’s official statement read, as reported by Financial Express.
Airtel had in fact earlier called for an increase in prices as about 35 per cent of the revenue of the industry is spent in government taxes and levies.
The telecom company added that an enhancement in ARPU will help in increasing investments in their network.