Airtel's Sunil Mittal Calls for Telecom Tariff Revision, Says Customers Paying Rs 500 Can Afford Rs 2,000

Bharti Enterprises Chairman Sunil Bharti Mittal has called for a correction in India's telecom tariff structure, arguing that customers with the financial capacity to spend more on mobile services should pay higher charges instead of relying on relatively inexpensive plans. He said that some users who can comfortably afford to spend Rs 2,000 a month are currently paying only around Rs 500 for their mobile connections. Speaking to NDTV CEO and Editor-in-Chief Rahul Kanwal on Walk the Talk, Mittal highlighted the need for telecom companies to generate better revenue from premium customers. He suggested that operators should focus on subscribers who have greater spending power rather than putting additional pressure on consumers who depend on affordable mobile recharge plans.

Mittal's comments come amid growing concerns within the telecom industry over low average revenue per user (ARPU) and the substantial investments required to expand and maintain India's digital infrastructure. Telecom operators have been spending heavily on spectrum, network expansion, 5G deployment and fibre connectivity to meet increasing demand for mobile data and faster internet services.

The Airtel chairman believes India's telecom services remain relatively inexpensive despite becoming an essential part of everyday life. Mobile connectivity now plays a significant role in digital payments, online banking, education, entertainment, communication and business activities. However, he feels that the amount many consumers spend on mobile services does not reflect their financial capacity or the value they receive.

Mittal also questioned the spending priorities of affluent customers, suggesting that people who are willing to spend substantial amounts on hotels, restaurants and other lifestyle activities should be prepared to pay more for mobile connectivity. His argument is that telecom services deserve greater financial recognition, particularly among subscribers who consume large amounts of data and can afford premium offerings.

The discussion also brings attention to Airtel's efforts to improve its average revenue per user. ARPU is an important financial indicator for telecom companies because it measures the average monthly revenue generated from each subscriber. Airtel's ARPU stood at approximately Rs 271 in the September 2026 quarter, compared with Rs 256 in the same quarter a year earlier. Mittal has previously indicated that an ARPU of Rs 350 would be a more sustainable level for the Indian telecom industry.

Higher average revenue could provide operators with additional resources to improve network quality, expand coverage and invest in emerging technologies. The industry is also preparing for future developments such as 6G, which will require further spending on infrastructure and research. Mittal has also highlighted India's infrastructure requirements in comparison with China, particularly in mobile tower deployment. India needs more telecom towers, stronger fibre networks and improved submarine cable infrastructure to support its growing digital economy. These investments are becoming increasingly important as internet usage expands across urban and rural areas.

His latest remarks have renewed discussions about the possibility of further mobile tariff increases in India. Telecom operators, including Airtel, Jio and Vodafone Idea, have been looking to improve their revenue generation after years of intense competition and relatively low mobile service prices. The major operators implemented tariff increases in June 2024, making the issue of affordable connectivity and industry profitability an important subject for consumers and businesses alike.

Mittal's comments should not be interpreted as an announcement of an immediate Airtel recharge price hike. Rather, they reflect his broader position that telecom pricing needs to become more balanced, with premium users contributing more while affordable services remain accessible to lower-income subscribers. If the industry moves towards this approach, customers with higher data requirements and greater spending capacity could increasingly be encouraged to choose premium plans. For budget-conscious users, maintaining affordable recharge options will remain important. Ultimately, the challenge for telecom operators will be to increase revenues without making essential mobile connectivity unaffordable for millions of Indians. Mittal's remarks highlight the growing debate over how India can maintain inexpensive mobile services while ensuring telecom companies have sufficient financial resources to build reliable networks and support the country's expanding digital economy.

Disclaimer: This image is taken from NDTV.