Bharti Airtel founder and chairman Sunil Bharti Mittal has called for higher mobile tariffs in India, saying the industry should aim for an average revenue per user (ARPU) of approximately ₹350 per month. He argued that the proposed level, equivalent to around ₹10–12 a day, would remain affordable for consumers while giving telecom operators the financial strength to expand networks and invest in digital infrastructure.
Speaking to PTI in an interview marking the 50th anniversary of Bharti Enterprises, Mittal said his earlier benchmark of ₹300 in monthly ARPU was set around a decade ago and no longer reflects inflation and rising operating costs. However, he did not provide a timeline for reaching the proposed ₹350 level, leaving the possibility of future tariff increases open rather than announcing a specific price revision.
Sunil Mittal’s ₹350 Monthly ARPU Proposal
Mittal said India’s telecom industry should move towards an average monthly revenue of ₹350 per user. He described the amount as reasonable given the range of services people access through mobile connections, including banking, education, digital payments, government benefit transfers, healthcare records and entertainment.
His calculation places the proposed monthly spending at approximately ₹10–12 per day. He compared mobile connectivity costs with everyday purchases, arguing that consumers routinely spend more on products such as soft drinks and snacks.
The proposed ₹350 figure is an industry-level target expressed by Mittal, not an announced Airtel recharge price or a confirmed tariff revision.
| Metric | Reported figure |
|---|---|
| Proposed monthly industry ARPU | ₹350 |
| Equivalent daily spending | Around ₹10–12 |
| Airtel’s September-quarter ARPU | ₹271 |
| Airtel’s ARPU a year earlier | ₹256 |
| Difference between ₹350 and Airtel’s latest ARPU | Approximately 29% |
| Last major industry-wide tariff revision | June 2024 |
Mittal said the earlier ₹300 benchmark had become outdated because the cost of running telecom networks had increased over the years. He argued that higher tariffs would help operators maintain financially sustainable businesses while continuing to invest in infrastructure.
Why Telecom Companies Want Higher Tariffs
Mittal’s argument rests on two broad factors: rising operating costs and the need for substantial infrastructure investment.
Telecom operators must spend continuously on electricity, fuel, employees, administration, network maintenance and technology upgrades. As these costs increase, companies need higher revenue to maintain profitability and fund expansion.
The chairman also highlighted the infrastructure gap between India and China. According to his remarks, China has more than one million mobile towers, while India has approximately 350,000.
Mittal said India would need to at least double its existing tower infrastructure. The country also requires more fibre-optic networks and submarine cables to support growing data consumption and digital services.
These investments are important because mobile networks increasingly support services beyond conventional voice calls and internet browsing. Digital payments, online banking, e-commerce, education platforms and government services depend on reliable connectivity.
For telecom companies, the challenge is to finance this infrastructure while maintaining affordable services for a large and price-sensitive customer base.
5G Investments Have Yet to Deliver Expected Revenue
Mittal also discussed the financial returns from India’s 5G rollout.
Telecom operators have invested substantial amounts in spectrum purchases and network deployment to introduce 5G services. Mittal said spectrum acquisition alone cost the industry lakhs of crores of rupees, followed by approximately ₹1.5 lakh crore in network infrastructure investment.
Despite the spending, he said the new technology had not generated the additional revenue streams that operators had initially expected.
The rollout has increased network capacity and provided the foundation for more advanced digital services. However, monetising that capacity remains a challenge.
Consumers have adopted 5G services, but operators still need to identify sustainable ways to generate additional revenue from higher speeds and new network capabilities.
Potential opportunities include enterprise connectivity, private 5G networks, cloud services, artificial intelligence infrastructure and other business-focused applications. These opportunities could take time to develop into significant revenue sources.
Mittal’s argument is that operators need stronger average revenue and healthier balance sheets to continue investing in the next phase of India’s digital infrastructure.
Airtel’s ARPU Is Still Below the Proposed Level
Bharti Airtel’s latest financial performance provides a useful comparison with Mittal’s proposed industry benchmark.
Airtel reported mobile ARPU of ₹271 in the September 2026 quarter, compared with ₹256 in the corresponding quarter a year earlier. The increase reflects higher customer spending and changes in the company’s subscriber mix.
Reaching ₹350 would require Airtel’s current ARPU to increase by approximately 29%.
ARPU is one of the most closely watched indicators in the telecom industry. It measures the average revenue generated from each user over a given period and helps investors assess how effectively operators monetise their subscriber bases.
A higher ARPU can improve revenue without requiring an equivalent increase in the number of subscribers. However, companies must balance price increases against the possibility of customers moving to cheaper plans, reducing usage or switching providers.
For Airtel, the gap between its current ARPU and Mittal’s proposed benchmark illustrates the potential revenue opportunity that management sees in the market.
When Could Mobile Tariffs Increase?
Mittal did not announce a date for the next round of mobile tariff increases. When asked when the industry might reach the ₹350 monthly ARPU level, he said he did not know.
The last major round of headline tariff increases took place in June 2024, when private telecom operators raised prices by approximately 10–25%.
Since then, the industry has continued to focus on improving revenue per user through plan changes, customer upgrades and adjustments to entry-level offerings.
Airtel withdrew some entry-level plans in August 2026 without announcing a general tariff increase. It subsequently brought back its ₹299 prepaid plan in November as its net customer additions slowed.
These developments demonstrate the difficulty of increasing prices in a market where affordability remains important. Operators must consider customer retention alongside revenue growth.
Although analysts have discussed the possibility of another tariff revision, Mittal’s latest remarks should not be interpreted as confirmation that an increase is imminent.
What Higher Tariffs Could Mean for Airtel, Jio and Vodafone Idea
A move towards higher industry ARPU could have different implications for India’s major telecom operators.
Bharti Airtel: Higher tariffs could support revenue growth and strengthen the company’s ability to fund network expansion. Airtel already reported ARPU of ₹271 in the September quarter, giving investors a reference point for the proposed ₹350 target.
Reliance Jio: As one of India’s largest mobile operators, Jio could also benefit from higher customer spending. However, any price increase would need to be balanced against subscriber retention and its competitive positioning.
Vodafone Idea: The company faces greater financial pressure because of its outstanding statutory obligations and investment requirements. Brokerage firm Jefferies has estimated that Vodafone Idea could require cumulative tariff increases of around 45% between FY27 and FY30 to meet its financial obligations. This is an analyst estimate, not a company-announced tariff plan.
Mittal said he wanted India to have three financially strong private telecom operators and described the position of Vodafone Idea and state-owned BSNL as challenging.
He also argued against a return to the earlier market structure, when more than a dozen operators competed in India. According to him, intense competition and weak balance sheets had limited investment in network infrastructure.
The Consumer Impact: Affordability Versus Better Networks
For consumers, higher mobile tariffs could increase monthly household spending, particularly for people who depend on low-cost prepaid plans.
The impact would not be identical for every customer. Subscribers using entry-level plans could face different price changes from those purchasing higher-value data packages.
There is also a risk that price increases could lead to customer churn. Following the June 2024 tariff revision, Reliance Jio lost approximately 12.74 million subscribers between July and September 2024, according to reported industry figures.
This illustrates why telecom operators cannot consider tariff increases only from a revenue perspective. They must also assess how customers respond to higher prices.
On the other hand, sustained investment in towers, fibre and network capacity could improve coverage, reliability and data speeds. The long-term consumer impact will therefore depend partly on whether higher industry revenue translates into better services and infrastructure.
The Bigger Picture
Mittal’s comments highlight a long-standing issue in India’s telecom sector: the balance between affordable connectivity and the financial sustainability of network operators. India has built a large mobile and digital services market, but telecom companies argue that low prices make it difficult to generate sufficient returns from the infrastructure supporting that ecosystem.
The debate is becoming more important as demand for data, cloud computing, artificial intelligence and connected services increases. Telecom networks will remain essential to these developments, but operators need business models that allow them to fund continued investment. The proposed ₹350 monthly ARPU target represents Mittal’s view of where industry pricing should move, rather than a confirmed decision by telecom companies.
Looking Ahead
The next major development to watch will be whether Airtel, Jio and Vodafone Idea announce changes to their prepaid and postpaid plans. Mittal’s remarks add to the industry’s calls for higher tariffs, but no specific timetable or new pricing structure has been confirmed.
For consumers, the key question is whether any future increase will be accompanied by improvements in network coverage, service quality and capacity. For investors, ARPU growth, subscriber retention and capital expenditure will remain important indicators of whether India’s telecom companies can improve profitability while supporting the country’s expanding digital economy.
SEO Title: Sunil Mittal Backs Mobile Tariff Hikes, Targets ₹350 Monthly ARPU
Meta Description: Sunil Mittal says India’s mobile tariffs should reach ₹350 per month, or ₹10–12 a day, citing rising costs and the need for telecom infrastructure investment.
URL Slug: sunil-mittal-mobile-tariff-hikes-350-monthly-arpu
Focus Keyphrase: Sunil Mittal mobile tariff hike
Secondary Keywords: Bharti Airtel ARPU, ₹350 mobile recharge, India telecom tariffs, mobile recharge price hike, Airtel Jio Vodafone Idea, Indian telecom industry
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
