Telecom tariff hike augurs well for Airtel, industry-wide revision likely

Analysts pointed out that further tariff hikes could come in the next 18-24 months as the aim is to hit an ARPU of Rs 300 per user per month

After about two years, the financially-stressed telecom sector will witness a comprehensive tariff hike including in the prepaid category, which makes up for a major chunk of the user base and revenue of any telco. Bharti Airtel took the plunge on Monday, announcing an average 20 per cent tariff hike across all prepaid packs and 25 per cent at entry. The move is expected to kick off a much awaited industry-wide price increase after the last significant hike in December 2019.

This follows Bharti group chairman Sunil Mittal’s statement recently that the company wouldn’t shy away from raising tariffs while he