Bharti Airtel Q2 results: Net profit rises 168% to ₹3,593 crore

Gopal Vittal, CEO and MD of Bharti Airtel, recently highlighted that the company's strategy of "tariff repair" aligns with its goal of increasing ARPU (average revenue per user) and consolidating SIM usage among customers. Vittal noted that Airtel's targeted approach of acquiring high-quality, premium users has led to an addition of 4.2 million smartphone users. This growth underscores Airtel's focus on premiumization within its user base, aiming to enhance revenue by attracting and retaining customers who are willing to invest more in Airtel's range of digital and telecom services.

Airtel bharti Airtel, along with other private telecom companies in India, implemented a 10-21% tariff increase in June 2024, marking the third tariff hike since 2019. These increases have been aimed at improving average revenue per user (ARPU) and overall financial stability for the industry, which has faced significant infrastructure and spectrum costs. The higher tariffs often encourage SIM consolidation, where customers reduce the number of mobile connections they maintain, typically choosing to keep only one active SIM due to the higher costs. For Airtel, this strategy has aligned with its focus on premiumization—targeting high-quality, revenue-generating customers—and has contributed to recent growth in its smartphone customer base. This approach has strengthened Airtel's market position and boosted its revenue per user by focusing on customer segments that are more likely to maintain and invest in high-quality service【21†source】【22†source】. Gopal Vittal, recently appointed as Bharti Airtel’s vice-chairman, emphasized the need for further "tariff repair" to enable sustained investments, especially in light of the low return on capital employed (ROCE) in the Indian telecom sector. Despite multiple tariff hikes in recent years, Vittal noted that the current rates still pose challenges for profitability in an industry facing high infrastructure costs and competitive pressures. Improved tariffs, he argued, are essential for telecom companies to fund advancements like 5G and network expansions, while also providing adequate returns to investors and ensuring long-term growth【21†source】【22†source】. NewasllHindustans Cricket news monthly newsletter trending topics contents mobile review