Airtel eyes Rs 300 per user revenue; to roll out fixed wireless broadband on 5G network by September
Airtel said on Tuesday. The company also said it plans to roll out fixed wireless access (FWA) broadband services on pure 5G network by September.
Airtel said its mobile subscribers' average revenue per user (ARPU) increased by 5.4 per cent to Rs 211 during June 2024 quarter compared to Rs 200 in the same period a year ago.
Bharti Airtel Managing Director Gopal Vittal during the company's earnings call on Tuesday said that tariff hike in July was very much required for the financial health of the industry.
«The industry undertook a round of tariff repair in early July, which was much needed for the financial health of the industry. The early signs from this repair are encouraging with a full flow through expected in two quarters.
»I do want to underscore that the industry needs a minimum of Rs 300 ARPU for long-term sustainable investment and respectable return ratios," Vittal said.
He said that with improvement in financial health, the company will generate a lot more cash and it will look at lowering debt as well as on dividends.
«Our return on capital for our business is hovering around 9 per cent in India and that is really abysmally low. The benefit of repair in the tariff gives you a lot more operating leverage where overall return on capital improves modestly. It is not good enough but it certainly improves. Once we get to Rs 300 (ARPU), there will be reasonable returns in the industry,» Vittal said.
He said that post tariff hike there has been modest 2G SIM consolidation.
Bharti Airtel on Monday
