Bharti Airtel has told CNBC-TV18 that the company has rolled out higher minimum recharge plans across two more circles i.e. Maharashtra and Kerala. The new entry-level plan is of ₹155 with unlimited voice calls, 1 GB data & 300 SMS.
This move of the company takes total entry level tariff hike to 19 circles out of 22 circles. The three circles that are yet to see a price hike from the telecom operator are Kolkata, Gujarat and Madhya Pradesh.
“In line with our focus on providing a better customer experience, we have discontinued the metered tariff and introduced an entry-level plan of Rs 155 with unlimited voice, 1 GB data and 300 SMS. Customers can now use this plan with no constraints. We believe this plan will prove greater flexibility, convenience and superior value,” an Airtel spokesperson told CNBC-TV18.
Bharti Airtel had first done away with the entry level plan of Rs 99 in Haryana and Odisha in November last year. Both circles combined to form nearly five percent of the company's overall subscribers.
Last month, the company extended this plan to another 15 circles, taking the total count to 17.
Bharti Airtel gained 15.26 lakh subscribers in the month of December, as per the official TRAI data. The company has expanded its 5G plus network to include all the northeastern states.
Brokerage firm Morgan Stanley believes that these plans can be rolled out pan-India over the coming weeks. The note also said that the entry level tariff hikes do not have a big revenue impact. As and when the price hikes are implemented on a pan-India basis, Morgan Stanley expects Bharti's India mobile revenue to benefit by 1.3-1.5 percent.
4G tariff hike will be the biggest trigger, according to the brokerage.
Goldman Sachs also issued a note on Bharti Airtel on Monday, stating that the stock should be bought on any correction, as the risk-reward is attractive. The brokerage expects the tariff hike to take place in the middle of the calendar year.
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