New Delhi: Bharti Airtel on Friday announced a 10-21 per cent hike in prepaid and postpaid mobile tariffs, a day after its larger rival Reliance Jio announced a hike in tariffs.
The move takes on significance as it marks the first major rate increase by the telecommunications industry in two and a half years.
Airtel's tariff hike on various plans ranges from 10 to 21 percent and will come into effect from July 3.
While the daily data add-on rate (1 GB) will see an increase of Rs 3, from Rs 19 to Rs 22, in the case of the 365-day validity plan that offers 2 GB/day, the increase goes up to Rs 600 Rs, as fares will increase from Rs 2,999 to Rs 3,599.
In the unlimited voice plan category, the tariff has increased from Rs 179 to Rs 199, which is an increase of Rs 20 on this 28-day validity plan that offers 2GB data to users.
"We have ensured that there is a very modest price hike (less than 70 paise per day) on the basic plans, in order to remove any burden on budget-conscious consumers," Airtel said while announcing the revision of its tariffs. mobiles.
Bharti Airtel said it has maintained that mobile average revenue per user (ARPU) should be above Rs 300, to enable a financially healthy business model for telecom companies in India.
"We believe this level of ARPU will enable the significant investments required in network and spectrum technology and provide a modest return on capital," the telco said.
Airtel's move comes close on the heels of Reliance Jio's tariff hike announcement, with market watchers expecting a similar tariff hike from Vodafone Idea soon.
Jio, India's largest telecom operator, on Thursday announced a 12 to 27 percent increase in mobile tariffs.
That said, a look at the rate and tariff increases announced by the two telcos respectively indicates that most of Airtel's mobile plans will continue to cost more than Reliance Jio's.
In fact, Airtel has been strongly advocating the need to increase tariffs in the industry and has time and again pointed out the "absurdly low" levels of tariffs prevailing in India compared to other parts of the world.
Among the unlimited voice plans, Airtel has increased the tariffs in the range of around 11 per cent and accordingly the tariffs are revised from Rs 179 to Rs 199; from 455 to 509 rupees; and from Rs 1,799 to Rs 1,999.
In the daily data plan category, the Rs 479 plan that comes with a validity of 56 days and 1.5 GB/day has been increased to Rs 579 (an increase of 20.8 percent).
The 1GB/day plan with 28 days validity has been revised from Rs 265 to Rs 299, while the 1.5GB/day offer has been increased from Rs 299 to Rs 349.
For longer validity plans of 84 days, subscribers will have to shell out Rs 140 more (in absolute terms) as per the offer. Here, the 1.5 GB/day offer increased from Rs 719 to Rs 859, while the 2 GB/day offer increased from Rs 839 to Rs 979.
Data add-ons have also become more expensive: for 1 GB and a validity of one day, the rates have increased from Rs 19 to Rs 22; and in the case of 2 GB, the prices will go from 29 to 33 rupees. The 4GB add-on, valid for 65 days, has been increased from Rs 65 to Rs 77.
Postpaid tariffs will see an increase of between 10 and 20 per cent, which will translate into an increase of between Rs 50 and Rs 200 in absolute terms, depending on the number of connections and benefits distributed.
Airtel said the new prices are applicable to all circles, including Bharti Hexacom Ltd circles.
The move takes on significance as it marks the first major rate increase by the telecommunications industry in two and a half years.
Airtel's tariff hike on various plans ranges from 10 to 21 percent and will come into effect from July 3.
While the daily data add-on rate (1 GB) will see an increase of Rs 3, from Rs 19 to Rs 22, in the case of the 365-day validity plan that offers 2 GB/day, the increase goes up to Rs 600 Rs, as fares will increase from Rs 2,999 to Rs 3,599.
In the unlimited voice plan category, the tariff has increased from Rs 179 to Rs 199, which is an increase of Rs 20 on this 28-day validity plan that offers 2GB data to users.
"We have ensured that there is a very modest price hike (less than 70 paise per day) on the basic plans, in order to remove any burden on budget-conscious consumers," Airtel said while announcing the revision of its tariffs. mobiles.
Bharti Airtel said it has maintained that mobile average revenue per user (ARPU) should be above Rs 300, to enable a financially healthy business model for telecom companies in India.
"We believe this level of ARPU will enable the significant investments required in network and spectrum technology and provide a modest return on capital," the telco said.
Airtel's move comes close on the heels of Reliance Jio's tariff hike announcement, with market watchers expecting a similar tariff hike from Vodafone Idea soon.
Jio, India's largest telecom operator, on Thursday announced a 12 to 27 percent increase in mobile tariffs.
That said, a look at the rate and tariff increases announced by the two telcos respectively indicates that most of Airtel's mobile plans will continue to cost more than Reliance Jio's.
In fact, Airtel has been strongly advocating the need to increase tariffs in the industry and has time and again pointed out the "absurdly low" levels of tariffs prevailing in India compared to other parts of the world.
Among the unlimited voice plans, Airtel has increased the tariffs in the range of around 11 per cent and accordingly the tariffs are revised from Rs 179 to Rs 199; from 455 to 509 rupees; and from Rs 1,799 to Rs 1,999.
In the daily data plan category, the Rs 479 plan that comes with a validity of 56 days and 1.5 GB/day has been increased to Rs 579 (an increase of 20.8 percent).
The 1GB/day plan with 28 days validity has been revised from Rs 265 to Rs 299, while the 1.5GB/day offer has been increased from Rs 299 to Rs 349.
For longer validity plans of 84 days, subscribers will have to shell out Rs 140 more (in absolute terms) as per the offer. Here, the 1.5 GB/day offer increased from Rs 719 to Rs 859, while the 2 GB/day offer increased from Rs 839 to Rs 979.
Data add-ons have also become more expensive: for 1 GB and a validity of one day, the rates have increased from Rs 19 to Rs 22; and in the case of 2 GB, the prices will go from 29 to 33 rupees. The 4GB add-on, valid for 65 days, has been increased from Rs 65 to Rs 77.
Postpaid tariffs will see an increase of between 10 and 20 per cent, which will translate into an increase of between Rs 50 and Rs 200 in absolute terms, depending on the number of connections and benefits distributed.
Airtel said the new prices are applicable to all circles, including Bharti Hexacom Ltd circles.
