Airtel Can Increase Data, Voice Tariff Soon; Aims Rs 250/Month Avg Revenue From 35 Crore Users In India
It seems that Airtel wants atleast 59% more revenues from every user, as they strongly feel that the current tariff is not sustainable.
Airtel Chairman: Rs 160 For 16 GB Is A Tragedy
While speaking at a book launch, Bharti Airtel founder and Chairman Sunil Mittal strongly hinted at a tariff hike, very soon.
In the next 6 months, a new tariff rise can be announced by Airtel.
As per Airtel Chairman, the current average going rate of data is not sustainable, and if users are paying Rs 160 for 16GB data access per month, then its a ‘tragedy’.
He said, “You either consume 1.6 GB of capacity per month either at this price point or you may prepare to pay a lot more. We are not wanting USD 50-60 like the US or Europe but certainly USD 2 for 16 GB a month is not sustainable,”
How Much Tariff Raise Can We Expect From Airtel?
Sunil Mittal didn’t share the exact specifics and numbers during the book launch event, but gave sufficient hints and hidden messages which suggests an idea.
Right now, Airtel is earning Rs 157 as ARPU or Average Revenue Per User, which is an improvement since last year/quarter.
But as per Airtel Chairman, this is less.
Rs 250 is the ideal ARPU or revenues per user which Airtel wants by default, and expects that ARPU of Rs 200 will be crossed by the time 2020 ends.
In case Airtel makes a target of Rs 250 ARPU, then it will be mean atleast 30-40% increase in tariff.
And for attaining Rs 200 ARPU, there can be 15-20% increase in the tariff from the current rates of data.
Overall, a range of Rs 100 to Rs 300 ARPU is what Airtel is planning, considering both the lower and higher end of spectrum.
Sunil Mittal said, “We need a ?300 ARPU in which you will still have lower end at ?100 a month with decent amount of data. But if your consumption is largely around watching TV, movies, entertainment and depriving other vital special services networks, then you need to pay for that,”
Sunil Mittal also clarified that the increased revenues will be used to expand and implement 5G coverage, enhance their network and more.
We will keep you updated, as more details come in.