Bharti Airtel Eyes Tariff Hike: Analyzing Market Pricing Structures

Bharti Airtel is contemplating raising data service tariffs, arguing that the affluent pay too little and the impoverished need no additional charges. The company's profits surged by 43%, driven by an expanding customer base. There's potential for monetization in its subsidiaries, as Airtel undergoes infrastructural upgrades.

Bharti Airtel is exploring opportunities to increase tariffs on data services, citing disparities in current pricing structures. Vice-Chairman Gopal Vittal emphasized that wealthy customers benefit from low rates, while the economically disadvantaged remain unaffected by additional charges.

In the first quarter, Bharti Airtel's consolidated profit witnessed a 43% rise to approximately Rs 5,947.9 crore, attributed largely to a growing customer base. Vittal pointed out that the company's recent pricing strategies are designed to boost average revenue per user, potentially aligning with markets like Indonesia.

On the investment front, Bharti Airtel is channeling resources into upgrading fiber and core networks, addressing existing service issues. Further monetization is anticipated through its subsidiaries, such as Nxtra data centers and Airtel Money, which could potentially go public in the coming years.

(With inputs from agencies.)