Telecom company Bharti Airtel is considering increasing the rates of mobile services in all its plans this year. Telecom company’s chairman Sunil Bharti Mittal gave this information here.
The company had last month increased the price of its entry level plan for minimum recharge plan or 28 days mobile phone service plan by about 57 per cent to Rs 155. This increase was done in eight circles.
Responding to a question from PTI, he said the return on capital in the telecom business is very low and a rate hike is expected this year. He was asked that when the balance sheet of the company is in such condition, then how much is the need to increase the rates. “It (rate hike) will be everywhere,” Mittal said at the Mobile World Congress (MWC) here on Monday.
He said that the company has invested a lot of capital. This is keeping the balance sheet strong, but the return on capital is very low in the industry. He said, “It needs to change. We are talking about a small increase, which is necessary in India. I hope it happens this year.
Asked about the impact of the price hike on the low-income group, Mittal said the increase in mobile rates is much less than the increase in spending on other things.
