Shares of Airtel hit a 52-week high of Rs 756, up more than 5%.
New Delhi: Major telecom group Bharti Airtel on Monday announced that it will increase prepaid rates by up to 25% effective November 26, in a notice sent to exchanges, the operator said. that decision was made “to provide a reasonable return on capital for a financially sound business model.”
“Bharti Airtel has always maintained that Average Mobile Revenue Per User (ARPU) needs to be at Rs 200 and eventually at Rs 300,” Airtel stated.
“We also believe that this level of ARPU will enable the significant investments needed in networks and spectrum. More importantly, this will give Airtel the opportunity to roll out 5G in India. So, As a first step, we are taking the lead in rebalancing our tariffs in November. Accordingly, our new tariffs will take effect from 26 November 2021,” it added.
The current Rs 79 plan will cost Rs 99 from Friday, a 25% increase. The Rs 149 package will cost Rs 179, the Rs 1,498 package will become Rs 1,799 and the Rs 2,498 package will cost Rs 2,999.
Airtel further mentions that the data top-up will now cost Rs 58 (up from Rs 48), Rs 118 (Rs 98) and Rs 301 (Rs 251), respectively.
The telecom operator’s shares hit a 52-week high of Rs 756, up more than 5% in early trading after the tax hike announcement.
