Mobile service provider Airtel has hiked its prepaid tariff rates by 20-25 percent effective from November 26, the company said in a release.
In a filing with the BSE, Airtel said the rates are in line with its need to maintain the mobile Average Revenue Per User (ARPU) 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 substantial investments required in networks and spectrum and more importantly give Airtel the elbow room to roll out 5G in India,” it added.
The rate hike in November is the “first step in rebalancing tariffs” and will be applicable to all prepaid packs from November 26 onwards.
The current ₹ 79 plan will cost ₹ 99 from Friday, a hike of 25 percent. The ₹ 149 plan will cost ₹ 179, the ₹ 1,498 plan will become ₹ 1,799 and the ₹ 2,498 plan will cost ₹ 2,999.
Airtel further mentioned that data top-ups will now cost ₹ 58 (up from ₹ 48), ₹ 118 (Rs 98) and ₹ 301 (Rs 251), respectively.
The telecom operator’s shares touched a 52-week high of ₹ 756, surging over 5 percent in the early trade, after the tariff hike announcement.