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In the price-sensitive prepaid mobile services category, Bharti Airtel has started what is believed to be the start of a long-awaited round of pricing hikes. Analysts expect Airtel's private-sector rivals, Reliance Jio and Vodafone Idea, to follow suit after the interconnect usage charge (IUC) was removed in January this year, dramatically lowering the average revenue per user (ARPU) measure across all private carriers.

The last time prepaid prices were raised was in December of 2019. Airtel said on Wednesday that its Rs 49 entry-level prepaid recharge has been withdrawn, and that “prepaid packs would now start at Rs 79 smart recharge and offer consumers up to four times more outgoing minutes of usage along with double data.” Following the announcement, the company's stock price increased by 5% on the stock exchanges.

Top telecom executives and analysts have stated that telecommunication margins are still very low and that a wave of tariff hikes is necessary for the sector's survival. In fact, Bharti Airtel chairman Sunil Mittal indicated in a press conference in early July that rates needed to go up since the sector was under a lot of stress. He had also stated, however, that such tariff rises could not be implemented unilaterally.

Vodafone Idea had followed Airtel in adjusting its postpaid mobile service pricing for its enterprise customers on Monday.

(Source: The New Indian Express)