Sunil Bharti Mittal, chairman of Bharti Airtel, has recently verified the company’s intention to increase all mobile phone call and data rates in 2023. In eight circles, the minimal recharge for 28-day mobile phone service plans has already been increased by 57% to 155. Mittal stated that the return on capital in the telecom industry is minimal and that a price increase is anticipated this year. He emphasised that the increase would be uniform, but that it would be relatively modest in comparison to other expenditures.
Mittal also emphasised the need for a robust telecom company in India, given the realisation of India’s digital dream and sustained economic growth. He noted that the government and regulator are cognizant of the situation, and that the public is also aware of the need for change. The focus on digital infrastructure in particular, he added, is yielding benefits for India, and businesses operating in this environment have much to gain.
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Regarding the impact of inflation and the global macroeconomic environment on the company, Mittal stated that India is advancing rapidly, and all sectors of the Indian economy are receiving a great deal of government and investor attention. He stated that the government has done much to ensure the health of the telecom industry’s infrastructure by providing assistance to BSNL and Vodafone Idea.
Mittal also discussed the company’s emphasis on the implementation of the 5G network, stating that monetisation would occur once the network’s foundation was complete. In addition, he stated that the company would not discontinue 2G services until the entire customer base has upgraded to 4G or 5G. Mittal affirmed further that the company’s payments bank is thriving and profitable, providing financial inclusion to over 65 million customers.
Overall, Mittal’s announcement of the tariff increase appeared pragmatic, with the need for sustainable operations serving as the impetus. He communicated that, although the price increase was necessary, it would be implemented in a way that was low and manageable, and would not place an undue burden on consumers.
