Bharti Airtel chairman hints at climbing cellular providers charges

New Delhi, August 24

Bharti Airtel chairman Sunil Bharti Mittal on Monday hinted at a rise in cellular providers costs within the subsequent six months, saying that information at low charges will not be sustainable for the telecom business.

He stated that 16 GB information consumption a month for Rs 160 is a tragedy. 

“You either consume 1.6 GB of capacity per month either at this price point or you may prepare to pay a lot more. We are not wanting USD 50-60 like the US or Europe but certainly, USD 2 for 16 GB a month is not sustainable,” Mittal stated at an occasion.

Mittal additionally stated that the typical income per consumer (ARPU) is predicted to cross Rs 200 in six months on digital content material consumption. ARPU is the measure of income generated per consumer for a telco.

“We need a Rs 300 ARPU in which you will still have lower end at Rs 100 a month with decent amount of data. But if your consumption is largely around watching TV, movies, entertainment and depriving other vital special services networks, then you need to pay for that,” Mittal stated on the launch of a e-book written by Bharti Enterprises government Akhil Gupta.

Airtel reported a rise within the ARPU to Rs 157 within the first quarter ended June 30, 2020. The rise in ARPU got here after the tariff hike by Bharti Airtel in December 2019.

Mittal stated that whereas telecom operators have served the nation through the tough occasions, the business must spend money on 5G, extra optical fibres, submarine cables and so on.

“Businesses which are not in telecom, also need to adopt digital. You should see solid ARPUs building up in the next 5-6 months for the industry to be sustainable. We are down to 2-3 players now. India is a very price conscious market. In six months time we should be crossing the mark of Rs 200 for sure and Rs 250 would be ideal,” Mittal stated. PTI

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