Mumbai: Bharti Airtel has announced its new mobile tariffs that will come into effect from 26 November. The telecom service provider has hiked its tariffs by 20-25 per cent across its offerings.

The company in a statement said, “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.”

“We also believe that this level of ARPU will enable the substantial investments required in networks and spectrum. Even more important, this will give Airtel the elbow room to roll out 5G in India,” it added.  

In August, Bharti Airtel chairman Sunil Mittal has expressed his concern that the telco business in India is unsustainable at the current ARPUs. He observed that Indians were consuming on average 16 Gb of wireless data per month yet revenue realisation of telcos per Gb of data remains very low.