Bharti Airtel Calls for Another Tariff Hike in India

Listen up, folks! You know how the telecom industry in India is always trying to find ways to make more money? Well, Bharti Airtel, the big name in the business, has just thrown its hat in the ring and is pushing for another round of tariff hikes.

Their reasoning? It all comes down to returns on capital employed (ROCE) – how much money they're making on their investments. Apparently, it's not enough for their liking, with ROCE in India still sitting at a measly 11%. So, to ensure they keep making those big bucks, they're suggesting a bump in prices.

Now, this isn't the first time the telcos have tried to get their wallets fatter through price hikes. In the past two years, they've already bumped up tariffs by a combined 40%. But even with that, Bharti Airtel believes more is needed.

Strong Financial Performance for Airtel

Let's talk about their financials. Bharti Airtel isn't exactly struggling; in fact, they’re showing pretty strong performance. In the recent quarter, their consolidated revenue hit a whopping Rs 41,473 crore, a 12% jump from last year! India specifically saw a 16.9% increase in revenue, driven by the mobile sector, which saw a 18.5% year-on-year growth thanks to those tariff hikes.

And their Average Revenue Per User (ARPU) is looking pretty good, hitting Rs 233 – a significant increase from Rs 203 in the same period last year.

The Need for Sustained Investments

But here's the thing: even with all this financial success, Bharti Airtel says they need more money to invest in their network and keep things running smoothly. They argue that the telecom industry needs further tariff hikes to guarantee sustained investments.

A Look at the Telecom Industry's ROCE

Let's take a look at some numbers, shall we? We can see that while Airtel's ROCE is 11%, other players like Reliance Jio are sitting at a higher 15%. Vodafone Idea, on the other hand, is lagging behind at 5%.

The Impact on Consumers

So, what does this all mean for you, the consumer? Well, if Bharti Airtel gets its way, you can expect to see your phone bills going up.

A Push for Innovation

Beyond the financial side of things, Bharti Airtel is also making a push for innovation, aiming to improve the customer experience. They've launched India's first AI-powered, network-based spam detection solution to tackle the pesky problem of spam calls and messages.

Expanding Network and Coverage

And they're not stopping there – they're also busy expanding their network and coverage, rolling out 5,000 towers and 15,200 mobile broadband stations in recent months. They're also working on their WiFi offerings and expanding their digital businesses to diversify and drive long-term growth.

Looking Ahead

It's a busy time for Bharti Airtel, and their focus on customer satisfaction is certainly something to keep an eye on. With their strong performance and plans for the future, it seems they're aiming to stay ahead of the curve.

However, the proposed tariff hike is a topic that is likely to spark debate, with the industry stakeholders and consumers having different perspectives on the necessity of price increases.