Bharti Airtel1Image Credit source: File Photo
Telecom company Bharti Airtel has given a big blow to the customers regarding the rates of its data plan. Because its direct burden will fall on the pocket of the customers. Now Airtel customers will have to pay more for using data. The company says that customers will have to pay more to use more data. However, valuations remain a challenge as data pack rates in India are among the lowest in the world on a per GB basis.
Gopal Vittal, MD and CEO of Bharti Airtel Company, says that Bharti Airtel is seeing an increase in the number of customers with the rollout of 5G service, but valuation determination remains a challenge. Customers should pay more for higher data usage, they have pointed out flaws in the Indian telecom industry’s valuation structure.
Airtel has reported a nearly 50 per cent year-on-year jump in net profit in the fourth quarter of FY2024, having launched 5G services in October last year. The company earned a net profit of Rs 3,006 crore in Q4FY23, as against Rs 2,008 crore in the year-ago period.
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Data pack rates are lowest in India
Currently, 5G service is available in more than 3,000 cities and the company is expected to expand it to all major cities by the end of the year. Vittal said that the company is seeing less customer demand and increase in data consumption with the introduction of 5G service. This will benefit the average revenue per customer as the number of 5G enabled handsets is increasing from the current 10-11 per cent. India has the lowest rates for data packs on a per GB basis in the world.
The company is getting help in reducing the cost
The company remains financially sound and expects to generate sufficient cash to meet its spending and debt servicing requirements. Greater focus on cost control is also helping the company reduce expenses. This includes reducing network, sales-related expenses and eliminating all 4G-capability investments.
