3 weeks ago
Airtel sees room to raise low-cost unlimited data tariffs
A company called Bharti Airtel helps people in India and Africa use their phones to talk and use the internet.
It is one of the biggest phone companies in India.
Airtel just told everyone how much money it made in the last three months.
It made more money than before — profit went up by more than a third.
The company's boss, Gopal Vittal, said that some phone plans with unlimited internet are too cheap.
He thinks when internet is too cheap, the company cannot earn enough money.
So Airtel may make some of those cheap unlimited plans cost a little more.
Airtel also wants to build big buildings full of computer servers, called data centres, in Mumbai.
It is also putting more money into its business in Africa.
These are the plans Airtel shared on Wednesday.
Bharti Airtel reported a 37.3% rise in profit after tax to Rs 8,167 crore for the June quarter.
Revenue from operations grew 18.3% to Rs 58,539 crore from Rs 49,462.6 crore a year earlier.
Executive Vice Chairman Gopal Vittal said low-priced unlimited data plans cap ARPU and need a 'sensible price architecture'.
Airtel India's average revenue per user rose 5.6% to Rs 264, the highest in the industry.
Airtel plans to step up Africa investments and is finalising Mumbai land parcels to build data centres, including a couple of 100-megawatt facilities.
- Who
- Bharti Airtel and its Executive Vice Chairman Gopal Vittal
- What
- Announced strong quarterly results, signalled possible tariff hikes on low-cost unlimited data plans, and outlined plans to increase Africa investment and build Mumbai data centres
- Where
- India and Africa, with data centre land acquisition in Mumbai
- When
- Wednesday, during the first-quarter earnings call for the June quarter
- Why
- To create a 'sensible price architecture' because very low-priced unlimited data plans cap ARPU
Key facts
- Company
- Bharti Airtel
- Profit after tax
- Rs 8,167 crore, up 37.3% (June quarter)
- Revenue from operations
- Rs 58,539 crore, up 18.3% year-on-year
- Airtel India ARPU
- Rs 264, up 5.6%, highest in the industry
- Africa annualised operational profit
- Over Rs 35,000 crore
- Data centre plan
- A couple of 100-megawatt facilities over the next couple of years
- Executive comment
- Gopal Vittal, Executive Vice Chairman, on the earnings call
Quotes
Gopal Vittal
Bharti Airtel Executive Vice Chairman
“Which means that for a very low level of pricing, you get unlimited data, and that means ARPU is capped.”
telegraphindia.com






