Bharti Airtel: Prepaid mobile tariffs revision plan augurs well
Shares of Bharti Airtel rallied to fresh 52-week high Rs 749.15, rising 5% in the early trade on November 22, after It announced revised mobile tariffs for the prepaid plan.
The company has hiked prepaid tariffs by 20-25% effective November 26.
Bharti Airtel has always maintained that the mobile Average Revenue Per User (ARPU) needs to be at Rs 200 and ultimately at Rs 300, so as to provide a reasonable return on capital that allows for a financially healthy business model.
Hence, it has initiated the first step, taking the lead in rebalancing tariffs during the month of November.
Bharti Airtel, the second largest operator, has an ARPU of Rs 153 compared to rivals Jio’s Rs 144 and Vodafone Idea’s Rs 109.
The sector has been waiting for a tariff increase and soon Vi and Jio are expected to follow suit. The last hike was in December 2019.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.