INTRO: Just once you thought India has the most cost-effective mobile data plan rates within the world, Airtel is preparing to hike the costs behind the scenes. At a recent book launch event, Bharti Airtel chairman Sunil Bharti Mittal reportedly asked customers to ‘prepare to pay tons more’.
According to a PTI report, Mittal said that offering 16GB of knowledge per month at Rs.160 may be a tragedy. He further wants customers to consume 1.6GB per month at Rs.160. Doing the maths, that translates to 1GB at Rs.100 and it jogs my memory of the infamous pre-Jio era.
“You either consume 1.6 GB of capacity per month either at this price point otherwise you may prepare to pay tons more. We are not wanting $50-60 like the US or Europe but certainly, $2 for 16 GB a month is not sustainable,” Mittal was quoted as saying by PTI.
According to Mittal, the corporate needs Rs.300 average revenue per user (ARPU). He mentioned that Airtel’s ARPU is probably going to cross Rs.200 in six months and Rs. 250 would be ideal. As of June 2020, PTI reports that the ARPU of Airtel is at Rs.157, as a result of the worth hike in December 2019. In case you’re wondering, Reliance Jio’s ARPU is at Rs.140.3 per month.
“We need a Rs 300 ARPU during which you’ll still have a lower end at Rs 100 a month with a decent amount of knowledge. But if your consumption is essentially around watching TV, movies, entertainment, and depriving other vital special services networks, then you would like to buy that,” he added.
This is a transparent indication of an imminent price hike from the brand. It will be interesting to ascertain if other competing mobile network operators like Vodafone Idea and Reliance Jio would follow Airtel’s lead.