Premiumisation bet pays off for Airtel

The country’s second largest telecom operator, Bharti Airtel, on Thursday reported monthly average revenue per user (Arpu) of Rs 200 during the April-June quarter. The company reached this mark mark after nearly 10 years. The decline in Arpu post-2016 was largely on the back of a tariff war led by Jio, which entered the market in September 2016.

However, Airtel has over the years rebuilt its business on the back of an increase in data consumption, prepaid to postpaid migration, upgrades from feature phones to smartphones, and traction in international roaming plans.The strategy seems to have paid off — the increase in Arpu during the quarter is without any headline tariff hikes. The company increased base level tariffs to `155 from `99 in March, which was also reflected in the Arpu uptick in June quarter.

Airtel’s Arpu is the highest among peers. Its closest competitor…



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