“People Are Consuming 30 GB Data For…”: Airtel Head Says Rates To Go Up
The chairman of the telecom company, Sunil Bharti Mittal, stated that Bharti Airtel aims to increase mobile phone call and data rates across all plans this year.
The cost of the minimum recharge, or the starting point for the 28-day mobile phone service plan, was hiked by the firm last month by around 57% to 155 in eight circles.
In response to a PTI inquiry about the necessity of a rate increase given the company’s strong financial position, he said a tariff increase is anticipated this year because the return on capital in the telecom industry is so poor.
“It (tariff hike) will happen across the board,” Mittal said at Mobile World Congress (MWC) here on Monday.
The return on capital in the sector is relatively low, he claimed, despite the company having invested significant sums of money that have strengthened the balance sheet.
When asked about the effect of price increases on those at the bottom of the food chain, he responded that they are minimal in comparison to what people are spending their money on.”Salaries have gone up, rents have gone up except one thing. There is no one complaining. People are consuming 30 GB for almost paying nothing. We don’t have more Vodafone (Idea) type of scenarios in the country.
“We need a robust telecom company in the country. The dream of India is digital, economic growth is fully realised. I think the government is fully conscious, the regulator is conscious and people are also very conscious,” Mittal said.
The business discontinued its 99-euro minimum recharge package, which included 200 MB of data and calls for 2.5 cents per minute.
While Airtel has a 200 ARPU short-term aim, it concentrates on a 300 ARPU medium- to long-term target through pricing increases for sustainable operations.
India’s emphasis on infrastructure and the economy, according to Mittal, is benefiting the businesses greatly. India is growing very quickly, according to Mittal, who was speaking about the effects of inflation and the global macroeconomic environment on the company.
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