It hasn’t been a long time since the telecom companies in the year 2021 have raised the prices of their prepaid plans. However, telecom companies are proposing to raise tariff costs once again. Gopal Vittal, the CEO of Bharti Airtel, has issued a remark on the matter.

Gopal Vittal, speaking on Airtel’s fiscal third-quarter earnings call on Wednesday, said that the second prepaid increase would be implemented in 2022. However, he underlined that there would be no hikes in the next three to four months. Let us tell you something: not only Airtel but also Vodafone Idea (Vi) is considering increasing the raise in prepaid plans.

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The pricing increase, according to Vodafone Idea CEO Ravinder Takkar, cannot be postponed till next year. He has previously said that Vi would be able to increase tariffs in the year 2022. Companies are increasingly very concerned about SIM Consolidation challenges.

In the event of SIM consolidation, customers with several SIMs discontinue their SIM recharge plans, but it is necessary that they do not use the services at all. Airtel will increase short-term Average Revenue Per User (ARPU) by 200 and long-term ARPU by 300.

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Gopal Vittal said that without the increase in ARPU with up to the level of ₹ 300, companies like Bharti Airtel will be unable to achieve 15% RoCE (Return on Capital Employed). According to Enlist, the companies would be unable to survive without an increase in Prepaid Plans.

The mobile tariff in India is very low compared to other countries. That is the sole reason Telecom Operators are unable to get a satisfactory return. And if there is another spike owing to this reason in the year 2022, consumers will not be surprised or disappointed.