Internet Plans To Get More Expensive As Airtel Wants More Revenue Per User

With COVID-19 shutting down schools and offices, the internet is our only saviour. Whether it is working from home, studying from home or even streaming content online, we cannot imagine our lives without the internet.

And affordable data prices have contributed to India being so internet savvy. However, it looks like the days of affordable mobile internet might end soon.

Reuters

Reported first by IANS, Bharti Airtel Chairman Sunil Bharti Mittal on Monday revealed that the low data rates that people in India are currently enjoying aren¡¯t sustainable for the telecom industry. He stated how paying just Rs 160 a month for 16GB of data is tragic for the companies who are trying to run their businesses.

He said this at a press event held for a book launch, written by Bharti Enterprises executive Akhil Gupta.

Mittal said, "You either consume 1.6 GB of capacity per month either at this price point or you may prepare to pay a lot more. We are not wanting USD 50-60 like the US or Europe but certainly USD 2 for 16 GB a month is not sustainable."

He has also hinted at the fact that the ARPU or average revenue per user (the measure of the revenue generated per user for a telecom company) is expected to be above the current Rs 200 per month in the coming six months.

"We need a Rs 300 ARPU in which you will still have a lower end at Rs 100 a month with a decent amount of data. But if your consumption is largely around watching TV, movies, entertainment and depriving other vital special services networks, then you need to pay for that."

Recently, telecom operator Airtel reported an increase in the ARPU to Rs 152 per user after it increased its tariffs last year in the month of December. In case you remember, this hike came right after Sunil Mittal had expressed fear that cheap plans are killing India¡¯s telecom industry.

Reuters

In the current interaction, he emphasized that even though affordable internet is helping people across the nation in these difficult times, the industry needs adequate revenue to invest in better infrastructure for faster and more stable connectivity as well as for bringing 5G to the nation.

He added, ¡°Businesses which are not in telecom, also need to adopt digital. You should see solid ARPUs building up in the next 5-6 months for the industry to be sustainable. We are down to 2-3 players now. India is a very price-conscious market. In six months time, we should be crossing the mark of Rs 200 for sure and Rs 250 would be ideal."