Airtel Plans Tariff Hike To Earn Rs 300 From Every Airtel User In India


Mohul Ghosh

Mohul Ghosh

Feb 29, 2024


Bharti Airtel’s share price rose nearly 1.6% on February 27th driven by investor optimism stemming from Chairman Sunil Mittal’s comments around boosting average revenue per user (ARPU) levels to Rs 300 besides ongoing 5G rollout across wider geographies aiding premiumisation. He termed it long overdue.

Airtel reported ARPU of Rs 208 in Q3, up from Rs 193 last year, mirroring its strategy of attracting higher-value subscribers. But Mittal feels much ground remains to cover for viability, with Rs 300 ARPU pivotal.

Eyes Becoming Digital Co Beyond Telecom

Mittal also outlined Airtel’s steady transformation into a digital services company spanning payments bank, tower JV, overseas presence etc rather than just Indian mobile services, to tap emerging revenue streams.

With the impending launch of satellite broadband venture OneWeb awaiting final license clearances, he envisions formidable competition from Elon Musk’s Starlink in future but suggests Airtel’s primary orientation will stick to enterprise clients rather than retail consumers.

ARPU doubled over 7 years, but more vital now

Airtel posted October-December 2022 quarterly revenue of Rs 37,900 crore, up 22% annually, demonstrating consistency in a challenging macro environment. As it explores uncharted areas like cloud communication, Mittal wants the digital business contribution to keep rising.


Mohul Ghosh
Mohul Ghosh
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