In view of rising pressure on the company’s bottom line, Bharti Airtel, on Wednesday, said it would discontinue giving freebies and discounted tariff plans to its subscribers and might even hike tariffs to meet rising input costs.
“We will continue to see an opportunity to raise voice realisation through continued cut back of discounted minutes...We will deter to touch headline tariff but at some point there may be some opportunity to raise headline tariffs,” Bharti Airtel Managing Director and CEO (India and South Asia) Gopal Vittal told journalists here.
Pointing out that voice tariffs were “absolutely unsustainable” as input costs were going up, Mr. Vittal said: “With the rising cost of diesel, network cost, the cost of spectrum, the cost of fibre, the cost of actually rolling out networks, I think there is no question but to reduce discounted minutes.”
In recent months, some mobile operators, including Airtel, have been cutting down on its freebies and discounted tariffs plans to improve profitability. “It has been happening over the last four quarters. If I look at secular basis over the next couple of years, there is no other option but for voice realisation to go up…Our voice realisation per minute has improved to 37.07 paise as compared to 35 paise four quarters ago,” he said.
Bharti Airtel also plans to invest around $2.2 billion in the current fiscal.
Plans to invest around $2.2 b in
the current fiscal