Bharti Airtel will raise prices of prepaid recharge by 20-25% from Friday, the company announced today.
The telecom giant has hiked the entry-level voice plan by 25%, while the tariff for unlimited voice bundles in most cases has seen a 20% increase.
Airtel has also increased user benefits with the base plans. For tariffed voice plans, Airtel will charge Rs 99 against Rs 79 at present with benefits such as 50% more talktime worth Rs 99, 1p/second voice tariff, and 200MB data. The validity period remains 28 days for the plan.
The Rs 149 plan will now cost Rs 179, while the Rs 219 plan will cost Rs 265. Airtel has also revised the Rs 249 and Rs 298 prepaid plans to Rs 299 and Rs 359, respectively. Among the telecom operator’s most popular, the Rs 598 plan will cost Rs 719.
Justifying the proposed tariff increase, the company said in a release to the BSE: “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.”
| Bharti Airtel raises prepaid mobile tariffs by 20-25%; says, will help 5G rollout, improve network, grow ARPU
“Therefore, as a first step, we are taking the lead in rebalancing our tariffs during the month of November.”
For plans with 84-day validity period, Airtel’s cheapest option will now cost Rs 455. The Rs 698 plan price has been hiked to Rs 839.
In terms of annual plans, the Rs 1,498 prepaid plan will cost Rs 1,799 from Friday, while the Rs 2,498 plan will send subscribers back by Rs 2,999.
Airtel has also announced hikes for unlimited voice bundles and data top-ups, raising the cost of the Rs 48, Rs 98, and Rs 251 vouchers to Rs 58, Rs 118, and Rs 301.
“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,” Airtel said.