Say goodbye to low tariffs! You may soon have to pay more for calling, data; here’s what Bharti Airtel says

By: | Updated: July 28, 2018 10:57 AM

The country's largest telecom operator, Bharti Airtel expects that the “unsustainable” tariff prices should start rising in next six months with industry having three more or less equal-sized players — Vodafone Idea, Bharti and Reliance Jio.

bharti, bharti airtelBharti said its capex for FY19 is around Rs 27,000 crore, most of which will be utilised for ramping up networks, but indicated that capex intensity would decline by FY20.

The country’s largest telecom operator, Bharti Airtel expects that the “unsustainable” tariff prices should start rising in next six months with industry having three more or less equal-sized players — Vodafone Idea, Bharti and Reliance Jio.

“The pricing is unsustainable at the moment and the market is very competitive. I think that the pricing should start lifting in the next six months,” Gopal Vittal, MD and CEO, Bharti Airtel (India & South Asia), said in an analyst call on Friday.

Bharti said its capex for FY19 is around Rs 27,000 crore, most of which will be utilised for ramping up networks, but indicated that capex intensity would decline by FY20. Vittal said the company’s focus is also on high paying customers in the prepaid and feature phone user segment, which will help in increasing revenues.

On data consumption growth, he said that the usage rose on an average by 1.3GB per quarter. But per subscriber data usage is approaching its peak. However, it will take sometime to reach there, he added. “On voice consumption, I think it’s getting close to the tipping point, but it’s a surprise that people are talking a lot,” he noted.

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