Bharti Airtel, an Indian telecom service provider, maintained its industry-leading growth in Q2FY25 by reporting the highest industry ARPU (average revenue per user) of Rs 233, up from Rs 211 in Q1. Airtel claims it is on track to meet its immediate ARPU target of Rs 300 with the industry-wide rate change by private carriers taking effect in July 2024. But in the mobile space, “the full benefit of tariff repair will be reflected in the coming quarter,” Gopal Vittal, the CEO and Managing Director of Bharti Airtel Limited, stated during the company’s Q2FY25 results call.
Meanwhile, the Indian company’s ROCE (return on capital employed) remains extremely low at 11.2 percent. Additional tariffs are the only way to make things better.
ARPU Drivers in Airtel remain Active
The CEO of Airtel stressed that the core ARPU drivers—such as feature phone to smartphone upgrades, prepaid to postpaid upgrades, data monetization, and international roaming—remain unaffected by the rate revision. Read more
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