Bharti Airtel Announces Mobile Tariff Hike Amid Industry Shifts

Bharti Airtel announced a mobile tariff hike of between 10-21% following Reliance Jio's rate increase. The hike will be effective from July 3 and aims to ensure a sustainable business model with ARPU above Rs 300. Entry-level plans will see modest increases to ease burden on budget-conscious consumers.

Bharti Airtel on Friday revealed plans to raise mobile tariffs by 10-21%, a day after its main competitor, Reliance Jio, announced similar increases. The new rates will be effective starting July 3, according to a company release.

In an effort to mitigate the financial strain on budget-conscious consumers, Airtel has kept price hikes modest for entry-level plans, averaging less than 70 paise per day. 'We have ensured that there is a very modest price increase on entry-level plans,' said the Sunil Mittal-led telecom giant.

The telecom firm has repeatedly highlighted the need for Average Revenue Per User (ARPU) to surpass Rs 300 to sustain a financially healthy business model. 'This level of ARPU is necessary to fund substantial investments in network technology and spectrum, while also providing a reasonable return on capital,' Airtel explained.

Notably, unlimited voice plans will see an increase of about 11%, with rates revised from Rs 179 to Rs 199, Rs 455 to Rs 509, and Rs 1,799 to Rs 1,999. Daily data plan rates are also affected, with the Rs 479 plan increasing to Rs 579, marking a 20.8% hike.

This tariff hike by mobile operators follows closely on the heels of the 10th spectrum auction, which concluded after just two days, displaying a muted industry response.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)