Airtel CEO hints at tariff hike

THE TELCO’S BIZ MODEL MAY BE SUSTAINABLE AT AN ARPU OF ₹200 PER MONTH, THE CEO SAID

NEWDELHI: Bharti Airtel Ltd chief executive Gopal Vittal on Thursday hinted at another round of tariff hike, stressing that the telecom operator’s average revenue per user (Arpu) needs to move towards ₹200 a month, and eventually to ₹300, for a sustainable business model.

Vittal did not give any timeline for the next increase in call and data tariffs.

He was addressing an analysts’ call, a day after the telco reported a loss of ₹15,933 crore in the June quarter due to proviposition sions of ₹11,746 crore made towards statutory dues. Airtel’s Arpu in the June quarter was at ₹157, up from ₹154 in the March quarter. The company last raised tariffs by up to 42% in December.

Airtel’s chief financial officer Badal Bagri said the provision made for adjusted gross revenue (AGR)-related dues should be considered “full and final”. The company also said its liquidity is comfortable, implying no challenges in paying the dues.

The department of telecommunications (DoT) estimated Airtel’s dues at around ₹43,780 crore, of which the telco has already paid ₹18,000 to the government.

“We have taken an incremental provision…This is full and final because, as per the (Supreme Court) order, this (the dues) cannot be challenged, recalculated or reassessed,” Bagri said.

The company, however, hopes the dues are to be paid over a few years, said Harjeet Kohli, director in-charge of finance.