Bharti Airtel has today announced that the telecom operator will be increasing its prepaid plan prices for various plans in India. The new rates will affect voice plans, unlimited voice and data plan bundles and data top-up recharges. Based on the plan itself, the new hiked price will represent an increase of around 20 percent to 25 percent. The new changes in plans will be effective from November 26, 2021
A minimum price increase of Rs. 20 has been announced on prepaid plans, while some packs see a price hike of up to Rs. 501 as well. Airtel says that this price hike has been introduced to enable a reasonable return on capital that allows for a financially healthy business model. In the past, Airtel has maintained that the average revenue per user (ARPU) needs to be at Rs. 200 and ultimately at Rs. 300.
Analysts said Airtel’s step is an indication that the five-year-long tariff war initiated by Jio’s entry into the sector in 2016 may finally be coming to an end with Aditya Birla Group’s Vodafone Idea and Jio also planning to raise tariffs.
If Jio follows suit, this is a significant positive for the sector as it gives a near-term boost to Arpus,” UBS Global Research said in a report. What is of point of view about this decision? Let us know in the comment section.