Telecom company Bharti Airtel’s new statement may increase the concern of customers. The company has indicated that the prepaid plan will be more expensive. Bharti Airtel’s management has reiterated its intent to achieve Average Earning Per Customer (ARPU) of Rs 300. According to reports from several brokerage companies, the company said in its meeting that there is a lot of scope to increase ARPU through tariff hikes and ‘premiumisation’ going forward.
Credit Suisse in its report on Bharti Airtel said that the 5G spectrum auction is likely to take place in the first quarter of 2022-23. The rating agency said in its report, “We attended Airtel’s analyst meeting on January 25. Airtel has reiterated its desire to further increase the tariff and achieve ARPU of Rs 300 through ‘expensive plans’.
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What is ARPU
ARPU stands for Average Revenue Per User. ARPU is the earning per user every month or throughout the year. For example- If a company has 100 users. Out of them, 50 users make a recharge of Rs 150 every month, while 50 users do a recharge of Rs 200. In such a situation, the company’s ARPU will be Rs 175 per month.
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Plans were expensive in December
Let us inform that earlier all three private telecom companies- Reliance Jio, Airtel and Vodafone Idea had increased the prices of their prepaid plans in December 2021. While Airtel had increased the rates of its plans by 18 percent to 25 percent, Reliance Jio and Vodafone-Idea (Vi) had increased their plans by 20 to 25 percent.