Sunil Mittal raises voice in favour of tariff hike to help telecom companies to sustain

By VARINDIA - 2020-08-26

Sunil Mittal raises voice in favour of tariff hike to help telecom companies to sustain

Airtel Chairman, Sunil Mittal raised his voice in favour of the need to rise mobile tariffs and said that the company expects its average revenue per user (Arpu) to cross the Rs 200-250 mark in the next five-six months.

 

Airtel reported an Arpu of Rs 157 in the Q1FY21. As per news source, Mittal observed that while telecom operators in India do not want to earn $50-60 from a customer, as is the case in the US, Arpu nonetheless needs to rise to Rs 300 for the business to be sustainable.

 

As per Mittal, a reset in telecom space is required. The three operating telecom companies need to invest in 5G connectivity and roll out the network. He also said that considering the financial stress, the telecom space may reduce to just two players in future. “Unless the third operator puts in fresh capital, the survival of the operator is in doubt,” Mittal observed.

 

The survival of Vodafone Idea has been in doubt ever since the Supreme Court asked telcos to pay AGR dues. While the government, on its part, has proposed a staggered tenure of 15-20 years to recover the AGR dues from the companies, the court has reserved its order.

 

Mittal also called on the government to be more courageous and less litigious. The telecom sector was one where lawyers can be seen everywhere, he said, asking that litigation be reduced. He lauded the government’s “vivad se vishwas” scheme as a good initiative.


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