Airtel raises tariffs by 20–25 per cent

Bharti Airtel will increase tariffs across prepaid plans by 20-25% from November 26, saying average revenue per user (ARPU) needs to go up for a "financially healthy business model”.

“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 model,” said the telco in an early morning statement on Monday.

The second largest operator has an ARPU of Rs 153 compared to rivals Jio’s Rs 144 and Vodafone Idea’s Rs 109


“We also believe that this level of ARPU will enable the substantial investments required in networks and spectrum. Even more important, this will give Airtel the elbow room to roll out 5G in India,” said the firm.

The new tariffs will come into effect from November 26, 2021.

The sector has been waiting for a tariff increase and soon Vi and Jio are expected to follow suit. The last hike was in December 2019.