In what has become a piece of shocking news for the users of one of India's significant mobile phone networks, the chairman of Airtel has signaled that the subscribers of the network would pay more as there would be a hike in tariffs soon.
Speaking at an event, Bharti Airtel Chairman Sunil Mittal said that the subscribers of Airtel should get prepared to pay a lot more in availing the internet data and the development has come when India is nearing to get shrink with two larger players on the telecommunications ground - Reliance Jio and Airtel. Mittal said that the users should get only 1.6GB of internet data for Rs 160 instead of getting 16GB for the same price point.
His suggestion of reducing the data would likely be pushing to the situation where Airtel would be expecting its users to pay Rs 100 for every 1GB consumed. According to PTI, Mittal stated that "you either consume 1.6 GB of capacity per month either at this price or you may prepare to pay a lot more". "We don't want $50- 60 (around 3,700 to 4,400) like the US or Europe but the current rate of $2 (around Rs 160) for 16GB data a month is not sustainable.
Mittal went on to say that asking Rs 160 for 16GB data was a tragedy for the business and the consumers should only be offered 1.6GB data at this price point, through which he signaled that the Airtel consumers ought to pay Rs 100 per GB data. Mittal was speaking at a book launch event of Bharti Enterprises Executive Akhil Gupta.
The chairman of Reliance's competitor said that the business needs Rs 300 per month as the average revenue per user (ARPU) to be sustainable and Mittal stated he wants the ARPU to cross at least Rs 200 per user in six months.
According to the news agency, Mittal said, "We need an Rs. 300 ARPU in which you will still have a lower end at Rs 100 a month with a decent amount of data". If the consumption of the consumers is largely around watching TV, movies, entertainment, and other special services networks, then they have to pay for that, he added.
To reach his target of Rs 300 ARPU per month, the telecommunication company would be increasing the tariffs further. Previously, it had increased the tariff last year in December following which it had recorded an increase in ARPU to Rs 157 in June 2020. If Mittal's suggestion is put into the current perspective, Airtel currently offers 1 GB data per day for Rs 199 with the validity for 24 days and as per Mittal's suggestion, the company would only be offering 2.4 GB data for Rs 199 for the whole validity period in the future.