Bharti Airtel founder and chairman Sunil Mittal has called for mobile tariffs in India to rise to an average of ₹350 a month, equivalent to roughly ₹10–12 a day for entry-level users, arguing that current pricing is too low against the cost of running networks and the infrastructure still needed. He did not specify a timeline for the increase.
In an interview marking Bharti Enterprises’ 50th year, Mittal said the cost of operating a network and the scale of telecom infrastructure yet to be built were the key considerations. He argued that the current packs are priced too low relative to rising costs for companies and the backlog in infrastructure. The proposal is framed around average monthly revenue per user, rather than a single tariff plan.
“I used to say earlier, the right level is ₹300 (monthly revenue per user), but that was 10 years back. There’s some inflation that we all suffer. Oil prices are up, electricity costs are up, employee costs are up, administrative costs are up. Everything is up,” he said.
Tower gap with China
Mittal pointed to the gap in mobile tower coverage between India and China. India has around 3.5 lakh mobile towers, while China has more than 10 lakh, he said. “So, we have a job to do. We have to at least double from where we are today. More fibre and more submarine cables are needed, and all this will require very serious investments,” he said.
He also pointed to the money invested in 5G, which has not generated revenue on the scale expected. The company has invested heavily in the technology, but the returns have lagged, he said. Telecom, he argued, supports a wide range of essential and commercial services, including UPI, health records, direct benefit transfers, and delivery and e-commerce companies, all of which run on mobile networks.
Mittal further argued that telecom is undervalued compared with the platforms that depend on it. “We do all the hard work, but we don’t get the same valuation and the profitability that those who don’t make these investments get,” he said.
₹350 a month, ₹10–12 a day
Under Mittal’s proposal, ₹350 per month on average would keep India’s tariffs “by far the cheapest anywhere in the world.” He described a structure with a number of options, including entry plans at “200 plus” and higher packs priced at ₹500, ₹700, ₹800 or ₹1,000. That works out to ₹10–12 a day, he said.
“You buy now soap and a packet of chips. You know what it costs. Having a bottle of Pepsi costs you a lot more than that (₹10–12/day),” he said. Mittal argued that users are not only paying for telecom use but also for banking, education, benefit transfers, UPI payments and health records, “and by the way, enjoy your movies and Instagram and YouTube.”
What it means for Airtel
From a business perspective, Airtel’s mobile revenue per user stood at ₹271 in the September quarter, compared with ₹256 a year earlier. A move to ₹350 would represent an increase of around 29%.
The company’s recent actions show the sensitivity of pricing and customer additions. In August, Airtel discontinued some entry-level plans without raising tariffs. In November, it brought back a ₹299 prepaid plan after net customer additions fell to 7.16 lakh in the September quarter from 33 lakh in the previous quarter.
Mittal’s call for higher tariffs places the focus on the balance between affordable mobile access and the investment needed to expand and upgrade India’s networks. His remarks did not set out a schedule or a mechanism for raising prices.
