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Shares of Bharti Airtel hit a new high of Rs 756, up 6 per cent on the BSE in Monday’s intra-day trade, after the telecom services provider increased its tariffs for telecom subscribers for a range of services effective November 26. The decision, the company said, was for a “financially healthy business model”.
The company hiked prepaid tariffs by 20-25 per cent and top-up data plans by 20-21 per cent. The stock surpassed its previous high of Rs 746 hit on November 15, 2021. In comparison, the S&P BSE Sensex was down 0.57 per cent at 59,298 points at 09.33 am. In the past month, Bharti Airtel has outperformed the market by gaining 11 per cent, as against a 3.9-per cent decline in the benchmark index.
“Bharti Airtel has always maintained that the Average mobile Revenue Per User (ARPU) needs to be at Rs 200 and ultimately at Rs 300, to provide a reasonable return on capital that allows for a financially healthy business model,” the company said in a statement.
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“We also believe that this level of ARPU will enable the substantial investments required in networks and spectrum. Even more important, this will give Airtel the elbow room to roll out 5G in India,” Airtel said. Therefore, as a first step, we are taking the lead in rebalancing our tariffs during November. Accordingly, our new tariffs as indicated below will come into effect from November 26, 2021,” the company added.
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