Bharti Airtel on Friday announced a 10–21% increase in prepaid and postpaid mobile tariffs, just a day after its larger rival Reliance Jio raised its rates.This marks the first significant tariff hike by the telecom industry in two-and-a-half years.
Airtel’s new tariff rates, effective July 3, will see daily data add-ons (1GB) rise by Rs 3, from Rs 19 to Rs 22. The 365-day validity plan offering 2GB/day will increase by Rs 600, from Rs 2,999 to Rs 3,599. Unlimited voice plans will see a Rs 20 increase, with the 28-day validity plan offering 2GB of data rising from Rs 179 to Rs 199.
"We have ensured that there is a very modest price increase (less than 70 paise per day) on entry-level plans in order to eliminate any burden on budget-challenged consumers," Airtel said in a statement.
Bharti Airtel has consistently stated that the mobile average revenue per user (ARPU) needs to be above Rs 300 to sustain a financially healthy business model for telecom companies in India.
"We believe that this level of ARPU will enable the substantial investments required in network technology and spectrum and offer a modest return on capital," the company added.
Following Reliance Jio's 12–27% tariff hike announcement on Thursday, market analysts anticipate a similar move from Vodafone Idea soon.
Despite the hike, most Airtel mobile plans will still cost more than those of Reliance Jio. Airtel has long advocated for tariff increases in the industry, citing the 'absurdly low' rates in India compared to global standards.
Airtel’s revised rates include an 11% increase in the unlimited voice plan category, with prices changing from Rs 179 to Rs 199, Rs 455 to Rs 509, and Rs 1,799 to Rs 1,999. Daily data plans have also been adjusted, with the Rs 479 plan (56-day validity, 1.5GB/day) increased to Rs 579 and the 1GB/day plan (28-day validity) rising from Rs 265 to Rs 299.
Longer 84-day validity plans will see a Rs 140 increase, with the 1.5GB/day plan rising from Rs 719 to Rs 859 and the 2GB/day plan rising from Rs 839 to Rs 979.
Data add-ons have also become more expensive, with 1GB for one day increasing from Rs 19 to Rs 22, and 2GB rising from Rs 29 to Rs 33. The 4GB add-on with 65-day validity will increase from Rs 65 to Rs 77.
Postpaid rates will see a 10–20% increase, translating to a Rs 50–200 hike depending on the number of connections and benefits.
Airtel confirmed that the new prices apply to all circles, including Bharti Hexacom Ltd. circles.
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