Sunil Bharti Mittal, the chairman of Bharti Airtel, recently announced that they will be increasing call and internet charges for mobile phones across all plans starting in 2023. As a preliminary measure, the telecom operator already raised the minimum recharge price by almost 57% to 155 in eight regions last month.
Mittal has responded to the PTI inquiry regarding the necessity of raising rates. They have clarified that the company’s strong financial position justifies the proposed tariff increase for the coming year. This choice is based on the telecommunications industry’s underwhelming capital gains.
On Monday, Mittal said, “It (tariff hike) will happen across the board.”
Despite the company receiving a substantial amount of capital and improving its balance sheet, he acknowledged that the industry has a low return on capital. When questioned about how price increases affect those at the bottom, he stated that these impacts are minimal compared to other expenses people have.
Mittal said that rents and salaries have both increased, with one exception. Nobody is voicing complaints. Individuals are using 30 GB for absolutely no cost. There aren’t any more situations like the Vodafone (Idea) scenario in the nation.
He continued by saying that the nation needs a strong telecom business. India is living the economic prosperity and digital dream. He believes everyone in the administration, the regulator, and the public is highly conscious.
Minimum Recharge Plan Discontinued By Company
Bharti Airtel has announced that it will no longer offer its minimum recharge plan of 99 rupees. This plan included 200 MB of data and calls at a rate of 2.5 paise per second. The decision to discontinue this plan is part of Airtel’s strategy to achieve a short-term Average Revenue Per User (ARPU) target of $200, while also working towards a medium- to long-term ARPU target of $300 through pricing adjustments aimed at improving operational performance.
According to Mittal, corporations reap significant benefits from India’s emphasis on infrastructure and the economy. According to Mittal, who was discussing the effects of inflation and the global macroeconomic environment on the company, India is changing very quickly. According to Mittal, India will profit significantly from a concentration on digital infrastructure.
Supporting BSNL & VI, The Government Made Significant Contributions Towards The Telecom Sector
According to Mittal, the government has made substantial efforts to strengthen the telecom sector by providing support to BSNL and Vodafone Idea. The government recently converted interest dues of 16,133 crores related to deferred payments for spectrum auction instalments and modified gross revenue payments into a 33.44% ownership in Vodafone Idea (VIL). This move was aimed at helping Vodafone Idea, which is burdened with a debt exceeding 2.2 lakh crore, and improving the overall infrastructure of the telecom industry.
When asked about the monetization of the 5G network, he explained that Bharti Airtel’s current focus is on rolling out the network infrastructure. Once a solid network base is established, they will shift their attention towards monetization strategies. Currently, there are approximately 100 million 2G subscribers remaining for the company. Mittal clarified that they do not plan to discontinue 2G services until their customer base transitions to either 4G or 5G networks.
OneWeb’s executive chairman, Mittal, has announced that the company is expected to launch its services in India by July or August. He also addressed and denied a rumor suggesting his plans to acquire a share in Paytm share.
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