Bharti Airtel has increased its prepaid mobile tariffs by 11-21%, a day after Reliance Jio announced a 12-25% hike in tariffs.
The new tariffs from Airtel will be effective from July 3rd. Airtel has ensured a very modest price increase of less than 70 paise per day on entry-level plans to eliminate any burden on budget-challenged consumers.
Among the unlimited voice plans, Airtel has raised tariffs by around 11%, with rates revised from ₹179 to ₹199, from ₹455 to ₹509, and from ₹1,799 to ₹1,999. In the daily data plan category, the ₹479 plan has been increased to ₹579 (20.8%).
Airtel has maintained that the mobile Average Revenue per User (ARPU) needs to be upwards of ₹300 to enable a financially healthy business model for telcos in India. The company believes this level of ARPU will enable the substantial investments required in network technology and spectrum and offer a modest return on capital.
The tariff hike comes after Airtel, Jio, and Vodafone Idea have not raised prices since 2021, a trend that analysts expected to end after the Lok Sabha elections 2024.
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