New Delhi : Bharti Airtel chairman Sunil Bharti Mittal has hinted at increasing mobile service charges in the next six months. He said that providing internet at a low price on Monday is not practical for the telecom industry for a long time. Mittal said that 16 GB internet data is being used at Rs 160 per month. He called such a cheap rate a tragedy.
He said, “At this price, either you consume 1.6 GB internet capacity or else be prepared to bear more cost. We do not want you to spend 50 to 60 rupees like in the US or Europe, but 16 GB of internet for two dollars a month is not practical for the industry from anywhere. Mittal said that the average revenue per user (ARPU) on consumption of digital content is estimated to cross Rs 200 in the next six months.
ARPU shows the revenue per user to telecom companies. He said, “We need Rs 300 ARPU, in this system also you will have a reasonable amount of internet for 100 rupees every month. But if you spend most of your time on TV, film, entertainment and other items, then you have to pay more. According to Airtel’s quarterly results, its ARPU has increased to Rs 157 in the first quarter of the current financial year.
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The increase in ARPU of the company was recorded after the increase in mobile plan prices in December last year. Mittal said that telecom companies served the country in difficult times. Now the industry has to invest on 5G, optical fiber cable and marine cable. He said that industries which are not in telecom sector also need to be digital. In such a situation, ARPU should increase in the next five to six months, so that the telecom industry remains viable.
Now only two or three companies are left in this area. India is a price sensitive market. In the next six months, we will definitely cross the 200 rupees ARPU level and perhaps the ideal condition will be 250 rupees ARPU.
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