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Here’s why Airtel is increasing tariffs on prepaid plans by 25%

Competitive pricing in India has led to internet access being cheaper than anywhere else in the world but that is set to change.

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Airtel will increase its mobile tariffs for prepaid plans from November 26, the company has announced in a press release. The revised prices indicate that the tariffs for all prepaid plans are being increased by 20-25%. "Airtel has always maintained that the mobile Average Revenue Per User (ARPU) needs to be at Rs 200 and ultimately at Rs 300, so as to provide a reasonable return on capital that allows for a financially healthy business model." - Airtel Press Release The telecom sector in India has been struggling with debt issues due to nearly half a decade of competitive pricing. Reports suggest an industry-wide consensus to raise telecom prices, thereby increasing the cost of internet access in India. Why is Airtel increasing tariffs? In the press release, the company said that higher tariffs were required to support the networks and…

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