Airtel Chairmans Take on Mobile Recharge Costs
New Delhi, November 14: Mobile recharge costs in India have often been a point of contention among users, who feel that telecom companies have raised their plans significantly. However, Sunil Bharti Mittal, founder and chairman of Bharti Airtel, holds a different view. He asserts that the cost of mobile services in India is still quite low, suggesting that users should ideally spend around ₹350 per month on their mobile connections.
Mittal compared mobile recharge costs to everyday items, stating that people often spend more on soap, chips, or a bottle of Pepsi than on mobile services. According to him, spending about ₹350 a month translates to approximately ₹10 to ₹12 per day for mobile services. In return, users gain access not only to calling and internet services but also to banking, UPI, educational resources, government services, healthcare, and entertainment.
He noted that about ten years ago, he had indicated that an average monthly spend of ₹300 was reasonable for mobile users. Considering inflation and the rising costs of network operations, he has now revised this figure to ₹350. Mittal explained that expenses related to fuel, electricity, staff, and administration have increased, while telecom companies are required to invest heavily in expanding their networks.
Significant Investment in Expansion
India still requires substantial expansion of its telecom infrastructure. Mittal pointed out that China has over one million mobile towers, while India has approximately 350,000 towers. He emphasized that India needs to at least double its existing tower infrastructure. Additionally, significant investment is necessary for fiber networks and undersea cables.
Telecom companies have already spent considerable amounts on 5G networks. Mittal mentioned that companies have invested millions of crores in spectrum acquisition and around ₹1.5 lakh crore in building the network. However, the anticipated revenue from 5G has not yet materialized fully.
Airtel’s ARPU Growth
Interestingly, Airtel’s current average revenue per user (ARPU) stood at ₹271 in the September quarter. Thus, an average ARPU of ₹350 would represent an increase of about 29 percent from the current level. This indicates that the figure Mittal is referencing is significantly higher than the present average expenditure.
However, this does not imply that a new ₹350 recharge plan will be launched soon. Mittal did not specify when tariffs might increase, only stating that an average expenditure of ₹350 would be a more reasonable benchmark for the telecom industry at this time.
Previous Tariff Increases
The last major tariff change in India occurred in June-July 2024, when leading telecom companies raised their plan prices by approximately 10 to 25 percent. Since then, companies have been attempting to steer users towards higher-priced plans without directly increasing all plans. Airtel had removed a ₹299 entry-level plan in August 2026, although it was later reintroduced.
Mittal’s statement certainly suggests that telecom companies are looking to generate more revenue from mobile services in the future. If tariffs rise, it could directly impact the monthly budgets of millions of mobile users.