Bharti Airtel, India's leading mobile service provider, announced a price increase for its mobile plans, effective July 3rd, 2024. This move comes after a similar hike by its biggest competitor, Reliance Jio.
Airtel's tariff revision ranges from 10% to 21% across various plans. However, the company assures customers that the increase for entry-level plans will be minimal, translating to less than Rs 0.70 per day. This aims to cushion the impact on budget-conscious users who rely on affordable mobile services.
The telecom giant justifies the price hike by emphasizing the need for a higher Average Revenue Per User (ARPU) exceeding Rs 300. According to Airtel, this level is crucial for a sustainable business model in India's fiercely competitive telecom market. A higher ARPU allows Airtel to invest significantly in network infrastructure upgrades and acquire new spectrum licenses. These investments are essential for improving network quality, expanding coverage, and preparing for the future of 5G technology. Ultimately, Airtel believes a healthy ARPU leads to better services and a return on investment that benefits both the company and its customers.
The specific plan changes include adjustments to popular unlimited voice plans. Plans priced at Rs 179, Rs 455, and Rs 1,799 will see an average increase of 11%, translating to new prices of Rs 199, Rs 509, and Rs 1,999, respectively. Additionally, the daily data plan costing Rs 479 will now be priced at Rs 579, reflecting a more significant 20.8% hike.
This tariff revision coincides with the recent 10th spectrum auction, which garnered a lukewarm response from the industry. Spectrum is a vital resource for mobile networks, and its acquisition is crucial for expanding network capacity and improving data speeds. Airtel's price hike might be a way to recoup some of the investments made during the auction and ensure continued network development.
While some customers might be disappointed by the price increase, Airtel's explanation highlights the need for a balance between affordability and network investment. The company's focus on improving services and building a future-proof network could ultimately benefit users in the long run.