Sunil Bharati Mittal, Bharati Airtel Chairman has hinted a possible hike in mobile tariffs in the next six months.
As per PTI, at a book launch event, which is written by Akhil Gupta, a Bharati enterprises executive, he said that 16GB data consumption for a month for Rs 160 could be catastrophic for the company in long run.
Mittal also added that the average expected revenue per user is expected to cross Rs 200 in the next half a year. This “Average Revenue Generated Per User,” as the name suggests is a measure of the revenue generated per user.
He also 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.” He also said, “We are not wanting USD 50-60 like the US but, USD 2 for 15GB data is not sustainable for a telco.”
“We need at least Rs 300 ARPU in which you will still have a lower end Rs 100 a month with quite a decent amount of data. But, if you consume a lot of data by watching movies, TV Shows etc including the telco’s special offerings, you need to pay for that,” Mittal Addded.
Airtel did report an increase in ARPU to Rs 157 in the first quarter till June 30, 2020. The ARPU rose due to a hike in tariff in December 2019.
“Businesses which are not in telecom, also need to adopt digital. ARPU’s will start building. in the next 5-6 months and it is necessary for us to sustain especially in a market like India where only 2-3 big contenders are left. In this price-conscious market, crossing the Rs 200 or even RS 250 mark would be ideal. While telecom operators have served the nation during these difficult times, the industry needs to invest in submarine cables, optical fibres and 5G,” Mittal said.