Airtel hikes tariffs by 20%, says decision is for 'financial health'

Bharti Airtel on Monday increased its tariffs for telecom subscribers for a range of services effective November 26, saying the decision was for a "financially healthy business model".

The company hiked prepaid tariff by 20-25 per cent and data top-up plans by 20-21 per cent.

“"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," said the company in a statement, referring to the telecom industry’s measure of revenue generated from customers.

Sunil Bharti Mittal, chairman of Bharti Airtel, had said in August tariff hike was the only way forward for the telecom industry. "We have done our bit in a limited way, we have run out of patience and we can't be an outlier all the time," Mittal said after a company investor call.

Airtel’s statement this morning said the tariff hike would lead to "substantial investments” in infrastructure and help it in rolling out 5G spectrum in India.