Bharti Airtel: Prepaid mobile tariffs revision plan augurs well

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.

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