Telecom industry expected steeper cut in Trai's 5G pricing: Bharti Airtel MD Gopal Vittal

Kolkata|New Delhi: Bharti Airtel is disappointed with the telecom regulator's recommended base prices for 5G airwaves, saying the industry had hoped for a much larger reduction that hasn't come, managing director Gopal Vittal said. He added that Airtel is likely to push through another tariff hike in calendar 2022 as it looks to boost average revenue per user (ARPU) to ₹200, with the market ready to "easily absorb" another hike.

"The industry had hoped for a massive reduction in prices; while there has been a reduction, it has not been adequate and is in that sense, disappointing," Vittal said at Airtel's fiscal fourth quarter earnings call Wednesday.

He added that he would not comment on Airtel's (5G auction) "strategy and approach since it is dependent on the final reserve price finalised by the government".


Airtel's shares rose nearly 3% in early trade before giving up gains to end 1.6% lower at ₹696.05 on the BSE Wednesday.

Vittal's comments came a day after the Digital Communications Commission (DCC) stuck to Trai's recommended base prices for 5G airwaves, while backing a telecom department panel view of auctioning the airwaves for 20 years. The telecom department is slated to seek Cabinet approval next week for DCC's views.

Trai's recommendations are a blow for telcos who were pushing for 5G reserve prices to be lowered by 90%, against the average 39% cut on 2018 prices that the regulator suggested last month.

On tariffs, Vittal said: "We should see a tariff hike in the course of this year itself to move our ARPU to ₹200, though getting to ₹300 will happen over a period of time".

The Big 3 telcos had raised prepaid tariffs by up to 25% last November/December to boost APRUs.