Airtel Likely To Increase Prices Of Entry-Level Packs: Here's Why

After removing the Rs. 49 prepaid plan from its platform, Airtel is planning to remove its Rs. 79 pack, which means the telco might increase the prices. The base plan of Airtel price is likely to start from Rs. 99. The new development comes after the company's chairman Sunil Mittal said the telco will not shy away from increasing prices.

He said that the average revenue per user should reach Rs. 200 by the end of this financial year and it should be increased to Rs. 300. For the unaware, Airtel has managed to achieve an ARPU of Rs. 146 per month in Q1 FY22. In addition, the company is announced that its board has approved raising plans.

Airtel Money Raising Plans

Notably, the telecom operator is planning to raise Rs. 21,000 crores to clear its dues and launch 5G services in the country. He added that the telecom industry has been requesting the DoT to resolve issues.

"For every Rs. 100 of revenue, Rs. 35 go in various forms of levies. We hope that as we step up and do our part, the government will also favorably look at some of the genuine demands of the industry, enabling a multiplier effect and positive outcome," Mittal shared in an investor call.

On the AGR front, Airtel has already cleared Rs. 18,004 crores by March 31, 2021; however, the total amount of dues is close to Rs. 43,000 crores. Also, the telecom operator is reportedly planning to file a review petition in the Supreme Court for the recalculation of AGR dues. Similarly, India's third-largest telecom operator Vodafone-Idea has filed a review application in the apex court.

Google Might To Invest In Airtel

Furthermore, it is expected that tech giant Google might invest in Airtel platforms. Both companies are also in advanced talks and soon they might come up with some announcement. Also, TOI reported that Google is likely to make a huge investment in the Airtel platforms.

This update comes soon after when Reliance Jio and Google are all set to launch 4G smartphones on September 10, 2021. However, we believe that Airtel is self-sufficient to clear its dues and launch 5G services in the country as tariff hike and raising money plans will help the telco to remain in the industry.