Bharti Airtel Projects Strong Growth Amidst Tariff Hike and 5G Rollout Plans

Bharti Airtel, India's second-largest telecom provider, projects increased financial health through a necessary tariff hike and plans to roll out 5G-based fixed wireless access broadband by September. The company's ARPU increased by 5.4% in the June 2024 quarter, driving a significant rise in consolidated profit.

Bharti Airtel, India's second-largest telecom service provider, highlighted the necessity of reaching an average revenue per user (ARPU) of Rs 300 for sustainable investment returns, as stated by Managing Director Gopal Vittal on Tuesday. Currently, the company's ARPU stands at Rs 211, reflecting a 5.4% increase.

During the earnings call, Vittal emphasized that the tariff hike in July was crucial for the financial health of the industry. Airtel plans to roll out fixed wireless access (FWA) broadband services on a standalone 5G network by September. This technology promises enhanced data consumption and superior customer experience.

In the April-June 2024-25 quarter, Bharti Airtel saw its consolidated profit jump over 2.5 times to Rs 4,160 crore, driven by improved ARPU and an exceptional gain. The company plans to leverage this revenue boost to reduce debt, distribute dividends, and invest in cloud and enterprise services.

(With inputs from agencies.)