Just if you thought India holds the most inexpensive mobile data plan rates in the world, Airtel is planning to increase rates behind the scenes. At a recent book launch event, Bharti Airtel President Sunil Bharti Mittal asked customers to “prepare to pay a lot more.”
According to a PTI report, Mittal said that offering 16GB of data per month at 160 rupees is a tragedy. Also, you want customers to consume 1.6GB per month at Rs 160. Doing the math, that turns to 1GB at Rs. 100 and reminds me of the infamous pre-Jio era.
“Unless you consume 1.6GB of data per month at this cost or you can prepare to spend a lot more. We don’t want $ 50-60 like the US or Europe, but certainly, $ 2 for 16GB per month is not sustainable, ”Mittal said, as quoted by PTI.
According to Mittal, the company needs an average revenue of Rs 300 per user (ARPU). He stated that Airtel’s ARPU is likely to cross Rs. 200 in six months and Rs. 250 would be ideal. As of June 2020, PTI reports that Airtel’s ARPU is at Rs. 157, as a result of the price increase in December 2019. In case you were wondering, Reliance Jio’s ARPU is Rs. 140.3 per month.
“We want an ARPU of Rs.300 where yourself will still have a low end of Rs.100 per month with a fair amount of data. Except if your consumption is mostly watching TV, films, entertainment, and depriving other networks of vital special services, then yourself should pay for that, “he stated.
This is a clear indication of an imminent price hike for the brand. This will be exciting if other competing mobile network operators, such as Vodafone, Idea, and Reliance Jio, would follow Airtel’s lead.