Airtel Can Increase Its Revenue Without Tariff Hike: Here's How

Airtel is likely to post strong earnings in the coming months despite adding less customers than Reliance Jio in January- March quarter. This comes after Airtel posted a profit in the same quarter. However, the ARPU of the company has been declined to Rs. 145.

However, Airtel is not the only telecom operator whose APRU declined in the Q4 quarter as Jio is facing the same issue due to interconnect usage charges, which have been removed by the telecom regulator TRAI.

"Bharti added 5.9 million or 6.9 million gross/active subscribers to 345 million/336 million in January 2021, consistently improving the pace of subscriber additions since the past six months. With this, the company regained its top spot in terms of active subscriber market share (SMS) at 34.3 percent," Motilal Oswal Financial Services said.

The report said that the superior execution quality of the Airtel is visible in the performance of the last four quarters. Also, the financial firm states that India's second-largest telecom operator Airtel managed to increase 13 percent growth in the overall user base, whereas the telco increased by 32 percent base in the 4G user base.

Interestingly, the firm added that telecom operators can achieve growth without increasing tariffs. Similarly, trading firm Dolat Capital added that Airtel has the potential to attract Vodafone-Idea users.

"While tariff increase is a welcome potential trigger and inevitable for a three-player market structure, Bharti is well-poised to gain market share and grow even in absence of the same," the firm further added.

Home Broadband Is Playing An Important Role In Airtel Growth

Airtel also said that it has added 274,000 new homes in the fourth quarter of the last financial year, which is the highest in the users' additions. The company said that in total it is serving 3 million internet users in the country. In addition, the company joined hands with local cable operators in 203 cities in the country.

It is quite evident that Airtel's home business is doing well in the country. Besides, Airtel's plans to expand its internet services to other circles is expected to help the company as the internet demand has been increased by many folds, which is why we believe it has the potential to increase the overall revenue from all circles.