India mobile tariffs should rise towards Rs 350 per user a month, says Sunil Bharti Mittal

Bharti Airtel founder and chairman Sunil Bharti Mittal said Indian mobile tariffs should move towards about Rs 350 per user each month. Mittal said current pricing cannot cover rising costs and a large build-out still pending. Mittal did not set any timeline for higher tariffs. Asked when the sector would reach that level, Mittal said: "I dont know.\"

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Mittal said earlier benchmarks no longer fit present conditions. Mittal said: \"I used to say earlier, the right level is Rs 300 monthly revenue per user, but that was 10 years back,\" and added: \"Theres some inflation that we all suffer.\" Mittal described Rs 350 as a blended average across price points. Mittal said this would still be cheap by global standards.

Indian mobile tariffs and the Rs 350 target

Mittal said a Rs 350 average could include entry plans at 200 plus. Mittal also pointed to higher packs of \"Rs 5, 7, 8 or 10 hundred\". Mittal said this works out to \"Rs 10-12 a day.\" Mittal compared telecom costs with daily spending. Mittal said: \"You buy now soap and a packet of chips. You know what it costs.\"

Mittal added: \"Having a bottle of Pepsi costs you a lot more than that.\" Mittal said a user can access many services for the same spend. Mittal said: \"For that money,\" a user can do banking and education. Mittal also listed benefit transfers, \"UPI payments and health records.\" Mittal added users can \"enjoy your movies and Instagram and YouTube.\"

Airtel revenue per user and recent Indian mobile tariffs

Airtels mobile revenue per user was Rs 271 in the September quarter, the company said. A year earlier, Airtels figure stood at Rs 256. A Rs 350 level would be about 29 per cent above Rs 271. Mittal argued the higher average is needed to fund networks. Mittal linked the issue to ongoing spending needs across the sector.

The last headline tariff rise came in June 2024. At that time, plans increased by 10-25 per cent. Since 2019, there have been only three tariff increases. Analysts had expected another round after Reliance Jios listing. Some analysts forecast a hike in late 2026. Vodafone Idea chairman Kumar Mangalam Birla has also called for tariff corrections.

Network costs, towers and fibre behind Indian mobile tariffs

Mittal said higher operating costs are one pressure on pricing. Mittal said: \"Oil prices are up, electricity costs are up, employee costs are up, administrative costs are up. Everything is up.\" Mittal also stressed a build gap in physical networks. Mittal compared India and China on tower counts. Mittal said: \"China has over a million towers. India has about 3,50,000.\"

Mittal said: \"So we have a job to do. We have to at least double from where we are today.\" Mittal added that India needs more fibre in the ground. Mittal also said more submarine cables are required. Mittal said these projects need \"very serious investments.\" Mittal linked this work to ambitions for a strong digital ecosystem. Mittal said more investment is still required to meet that goal.

5G spending, digital ecosystem and Indian mobile tariffs

Mittal said operators must keep balance sheets strong for repeated investment. Mittal said many digital services ride on telecom networks. Mittal cited UPI, health records and direct benefit transfers. Mittal also mentioned delivery and e-commerce firms. Mittal said telecom forms the digital spine that supports these services. Mittal pointed to large 5G spending that has not delivered the hoped revenue.

Mittal said: \"Spectrum cost operators lakhs of crores,\" and added network build costs. Mittal said the build took \"another lakh and a half crores.\" Mittal said: \"Serious investments have gone,\" but returns disappointed. Mittal called the revenue outcome \"a bit of a disappointment.\" Mittal still said the work created needed capacity for the digital world. Mittal also argued telecom valuations lag those of platforms that depend on it.

Mittal said: \"We do all the hard work, but we dont get the same valuation and the profitability that those who dont make these investments get.\" Mittal also discussed competition after Jios listing. Mittals remarks suggested Airtel sees room for higher prices. Mittal said the listing does not change the competitive landscape. Mittal said the sector should avoid returning to a market with over a dozen operators. Mittal linked that past structure to weak balance sheets.

Implications of Indian mobile tariffs for operators and users

Airtel withdrew some entry-level plans in August, without raising headline tariffs. Airtel brought back a Rs 299 prepaid plan this month. The move came as net customer additions weakened. Airtel added 7.16 lakh customers in the September quarter. In the previous quarter, additions were 33 lakh. Mittal did not set out how future hikes could affect subscriber growth.

Past tariff increases have sometimes led to churn. Jio lost around 12.74 million subscribers between July and September 2024 after its last increase. Mittal did not address that risk. Mittal also said operators run networks at \"20, 30 per cent of our capacity.\" Mittal said this leaves room for more traffic. Mittal framed future spending around AI capacity, fibre, towers and satellite links.

Mittals comments also carried implications for Vodafone Idea. Jefferies has estimated Vodafone Idea needs cumulative tariff increases of about 45 per cent. The estimate covers FY27 to FY30, aimed at meeting statutory dues. Mittal said a preference for three strong operators. Mittal added that Vodafone Idea and BSNL are in a challenging spot. Mittal argued industry structure affects investment levels and infrastructure quality.

With inputs from PTI