Bharti Airtel is soon expected to increase the prices of its plans, as suggested by the telecom operator's chairman Sunil Mittal. The price hike would mainly involve the data tariff rates, which is expected to take place in another six months. Read on to know more about this.
Airtel's possible price hike
It is suggested that the data rate hike would be mainly because data at low rates is not a feasible idea in the telecom sector. Airtel users should pay Rs. 160 for 1.6GB of data instead of Rs. 160 for 1GGB of data. Providing 16GB of data for Rs. 160 a month is more like a 'tragedy' for Mittal. Additionally, the Airtel chairman thinks that the industry should invest money in 5G, more optical fibres, submarine cables, and more.
As per a report by PTI, Mittal stated, "You either consume 1.6 GB of capacity per month either at this price point or you may prepare to pay a lot more. We are not wanting USD 50-60 like the US or Europe but certainly USD 2 for 16 GB a month is not sustainable."
If the price hike takes place, Airtel users won't be able to get hold of more data at lower prices and are likely to pay Rs. 100 per GB of data consumed, which will be too much. Apart from this, Airtel wants users to pay extra for watching TV, movies and other online content that is categorised as 'special services.' Mittal further said, "We need a Rs 300 ARPU in which you will still have a lower end at Rs 100 a month with a decent amount of data. But if your consumption is largely around watching TV, movies, entertainment and depriving other vital special services networks, then you need to pay for that."
In addition to this, Airtel has also suggested that its average revenue per user (ARPU) should cross Rs. 200 a month in the next six months. The telecom operator's ARPU increased to Rs. 157 per month after a price hike of up to 40% that got into effect in December last year.
While Jio and Vodafone increased their respective tariffs back in December, there is no word on whether or not the two telecom operators will do so this time too.