Gopal Vittal, the CEO of Bharti Airtel, highlighted the demand for an enormous rise in mobile tariffs in the country in an effort to increase revenue while also bringing the firm into compliance with global standards. Vittal said during Airtel’s post-result analyst call that the market is prepared for these hikes, that might be absorbed progressively over time.
Vittal stressed that even at Rs 300, the Average Revenue Per User (ARPU) would remain among the lowest globally, even though Bharti Airtel reported an ARPU of Rs 209 in the fourth quarter of the financial year 24, up from Rs 193 in the identical period the previous year. While ARPU increased sequentially from Rs 208 in the previous quarter.
Vittal noted that Airtel had raised beginner pricing over the previous two quarters, but he pointed out further increases were required, arguing that the positive effects of tariff repair outweigh any potential consolidation at the more affordable end of the market. He said he was likely the market would weather more tariff increases, citing the evidence that beginning employees smartphone prices were reduced once more following a prior increase brought on by shortage of computer chips, which in turn led to a rise in smartphone shipments.
Vittal emphasized that the telco’s 5G rollout are directly responsible for Airtel’s robust revenue-earning client additions. Vittal noted that the accessibility of free data for 5G plans has had a negative impact on ARPU, despite the fact that there were 72 million 5G subscribers at the end of March and that number is projected to grow by 2-2.5 million new users per month. He clarified that data usage would probably go down if this data were charged in. Airtel intends to concentrate on fixed wireless access (FWA) in the months to come, despite difficulties in monetizing 5G. Customer premises equipment is at present accessible in 25 locations. According to Vittal, Airtel’s push for FWA will fully take effect by the second quarter, and the business is pushing toward autonomous deployment in these cities.
Vittal indicated that Airtel is going to continue purchasing capital transport infrastructure in relation to capital expenditure (capex) targets especially in the light of it’s growing data volume. In addition, greater expenditures are anticipated in the data center and enterprise sectors, with a special emphasis regarding the Homes sector, which will likely expand. Vittal stated that Airtel is thinking about making a number of B2B acquisitions. Given the widespread adoption of 5G, wireless investments would moderate, although Vittal emphasized the necessity for more urban towers in addition to the country’s present rural rollout. In the fourth quarter, the telco spent a large amount of money on one-time capital expenses to set up data centers and submarine cables.
