11:27 23rd Nov, 2021
Airtel Prepaid Users will have to pay 25% more starting November 26 | TechTree.com
Airtel Prepaid Users will have to pay 25% more starting November 26
Airtel wants a higher average revenue per user so its users will have to pay 25% more for prepaid plans.
India's telecom price wars between the big three - Jio, Airtel and Vodafone has led to profitability issues. With the onset of 5G operations in the country, the only way these big telecom operators can make a profit is by charging the consumer more.
Airtel has stated that the reasoning behind the decision is, “to provide a reasonable return on capital for a financially healthy business model.”
Airtel is leading the way with 25% hikes in its prepaid plans. Airtel currently makes Rs 153 per user but the company says that the Average Revenue Per User should ideally be Rs 200 and in the future, that number should be Rs 300. Airtel’s cheapest plan is for Rs 99 for 28 days. That price will now be around Rs 125 thanks to the hike.
"We also believe that this level of ARPU will enable the substantial investments required in networks and spectrum. Even more important, this will give Airtel the elbow room to roll out 5G in India. Therefore, as a first step, we are taking the lead in rebalancing our tariffs during the month of November. Accordingly, our new tariffs will come into effect from November 26, 2021.” - Airtel
Airtel provided details of the new plans and upgrades that it’s offering. The Rs 219 plan with 1GB data per day, 100 SMS per day, and unlimited calling will now cost Rs 265. The Rs 598 plan with 84 days validity, 1.5GB data per day, 100 SMS per day, and unlimited calling will now cost Rs 719.
A few months ago, both Airtel and Vodafone Idea increased the cost of family centric plans and a few postpaid plans as well.
Airtel’s shares hit a 52-week high of ₹ 756, going up by 5% after the tariff hike announcement.
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