Airtel, one of India’s leading telecom providers, has decided to raise its mobile tariff rates following a similar move by Jio earlier. The new prices will come into effect from July 3.
Impact on Users
This decision by Airtel is expected to cause inconvenience to users as both major telecom companies in the country have sequentially increased their plan prices. Airtel’s adjustments include hikes in unlimited voice, daily data, and data add-on plans.
Changes in Plan Prices
After Airtel’s announcement:
1) The Rs 179 prepaid plan, previously priced at Rs 179, will now cost Rs 199.
2) The Rs 455 plan will now be Rs 599.
3) The Rs 1,799 plan will now be Rs 1,999.
Airtel has also raised prices across various plans, from as low as Rs 265 to as high as Rs 3,599.
Reasons Behind the Price Increase
Airtel cited the need to increase the average revenue per user (ARPU) as the primary reason for the tariff hike.
Maintaining a sustainable business model for telecom companies in India, Airtel emphasized the importance of an ARPU exceeding Rs 300.
This adjustment aims to ensure financial stability amidst competitive pressures in the telecom sector.
Revised Prices of Selected Plans
Old Prices | New Prices
Rs 265 | Rs 299
Rs 299 | Rs 349
Rs 359 | Rs 409
Rs 399 | Rs 449
Rs 479 | Rs 549
Rs 579 | Rs 649
Rs 719 | Rs 859
Rs 839 | Rs 979
Rs 2,999 | Rs 3,599
Increase Reason
Airtel attributes the tariff hike to the need to boost the average revenue per user (ARPU) in the telecom sector.
They argue that maintaining an ARPU above Rs 300 is essential for sustaining a viable business model in India’s competitive telecom market.
