June 28th 2024.
A major development has been announced in the telecom industry today as Bharti Airtel has decided to increase its prepaid and postpaid mobile tariffs by 10-21%. This decision comes just a day after its main competitor, Reliance Jio, made a similar announcement about raising rates.
This move is significant as it marks the first time in two-and-a-half years that the telecom industry has seen such an increase in tariffs. The revised tariffs by Airtel will come into effect from July 3rd and will affect various plans, with an average increase of 10-21%.
For example, the daily data add-on will now cost Rs 22, an increase of Rs 3 from the previous rate of Rs 19. Similarly, those subscribed to the 365-day validity plan offering 2GB/day will see a hike of Rs 600, from Rs 2,999 to Rs 3,599.
In the unlimited voice plan category, the 28-day validity plan that offers 2GB of data will now cost Rs 199, an increase of Rs 20 from the previous rate of Rs 179. Airtel has assured that the entry-level plans will see only a modest price increase to minimize any burden on budget-conscious consumers.
The telecom giant has also stated that the average revenue per user (ARPU) needs to be above Rs 300 in order to sustain a financially healthy business model for telcos in India. Airtel believes that this level of ARPU will enable them to make the necessary investments in network technology and spectrum while offering a modest return on capital.
This decision by Airtel comes shortly after Reliance Jio's announcement of a 12-27% hike in mobile tariffs. However, a comparison of the revised tariffs by both telcos shows that most of Airtel's plans will still be priced higher than Jio's.
Airtel has been vocal about the need for a tariff hike in the industry, citing the low levels of rates in India compared to other parts of the world. In line with this, the company has increased rates for unlimited voice plans by around 11% and for daily data plans by an average of 12%.
For instance, the Rs 479 plan with a 56-day validity and 1.5GB/day will now cost Rs 579, while the 1GB/day plan with 28-day validity has been revised from Rs 265 to Rs 299. Similarly, in the longer 84-day validity plans, subscribers will have to pay Rs 140 more for the 1.5GB/day offering and Rs 140 more for the 2GB/day offering.
The data add-ons have also become costlier, with the 1GB and 2GB add-ons now priced at Rs 22 and Rs 33 respectively. Airtel has also raised postpaid rates by 10-20%, which will result in an increase of Rs 50-200 depending on the number of connections and benefits offered.
It is worth mentioning that these revised tariffs apply to all circles, including Bharti Hexacom Ltd circles. This decision by Airtel is expected to be followed by Vodafone Idea soon, as it too faces the need to increase tariffs in order to sustain its business. Overall, this move by Airtel and Jio signals a shift towards more sustainable pricing in the Indian telecom industry.
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