Lagatar24 Desk
New Delhi, Nov.22: Bharti Airtel, India’s largest telecom company announced on Monday that it will raise the rates of its prepaid mobile plans by at least 20% later this week. The decision, according to the business, will offer Airtel more room to roll out 5G in India.
Airtel’s cheapest mobile plan will now cost Rs.99 for 28 days, a 25% increase above the current price of Rs.79 per month. The most expensive plan will now cost Rs.2, 999 for 365 days.
Tariffs for 11 additional mobile plans and three data packages will also be increased by 20%. The new plans will go into effect on Friday (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,” the company said in the statement.
According to reports, this level of ARPU will allow for significant network and spectrum investments. “More importantly, this would allow Airtel to roll out 5G in India,” the statement continued.
Bharti Airtel recorded a mobile APRU of Rs.153 in its most recent quarterly earnings report in November.
According to a Bloomberg article, the rate increase is expected to enhance Airtel’s net debt-to-earnings before interest, taxes, depreciation, and amortisation (Ebitda) ratio.
Bharti Airtel’s stock jumped as much as 5.8% to a record high of Rs.755.95 minutes after the company announced a raise in prepaid prices.
