Bharti Airtel shares up 5% on prepaid tariff hike announcement

Our Bureau Mumbai | Updated on November 22, 2021

Airtel is at ₹752.25 on the BSE

The shares of telco major Bharti Airtel were trading 5 per cent higher on Monday morning after the company announced a hike in its prepaid tariffs, effective from November 26.

At 9:50 am, Airtel was trading at ₹752.25 on the BSE, up ₹38.05 or 5.33 per cent. It had opened at ₹743 as against the previous close of ₹714.20. It recorded an intraday high of ₹756.00 and a low of ₹737.50.

On the NSE, it was trading at ₹750.55, up ₹36.20 or 5.07 per cent.

Airtel on Monday announced revised tariffs, hiking the price of its minimum tariff plan to ₹99 for the prepaid users, from ₹79 earlier.

The company has always maintained that the mobile Average Revenue Per User (ARPU) needs to be at ₹200 and ultimately at ₹300, so as to provide a reasonable return on capital that allows for a financially healthy business model, it said in an official release.

"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 said.

"Therefore, as a first step, we are taking the lead in rebalancing our tariffs during the month of November," it further added.

For the unlimited plans, it has set the minimum plan to ₹179 (from ₹149) for 28 days in which the customer will get unlimited calling, 100 SMS/day and 2 GB data.

In the maximum category, it has set the tariff to ₹2,999 (from ₹2,498 earlier) with a validity of 365 days, unlimited calling, 100 SMS/day and 2GB/ day data.

These rates will come into effect from November 26, 2021.

Published on November 22, 2021

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