Airtel chief Sunil Mittal complains about government levies, to hike tariffs – Times of India
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Airtel has announced a Rs 21,000-crore rights issue as it looks to reduce its Rs 1.6-lakh-crore debt pile-up. Mittal said tariff revisions are the need of the hour even as the government should look at a softer tax regime for the debt-laden industry, which offers one of the lowest tariffs in the world.
He said recent tariff changes by Airtel across some categories show that it has “run out of patience” and will be taking steps to shore the company’s finances.
“Indians are consuming an average of 16GB data per user per month. It is time that tariffs do take a tick-up to make the industry viable and, more importantly, has decent and appropriate returns on capital to grow into more technology areas, to roll out more networks, and become more viable model of sustainability in the future,” Mittal said.
He said despite the cash crunch and debt, the industry has been expanding and offering services, but “at a very minimal pricing level”.
Asked if Airtel will take a lead in further raising tariffs, Mittal said the company has already been doing it in a limited manner by pushing up base tariffs to Rs 79.
“Can this go to Rs 99 eventually? My answer is yes, the question is when…In the end, we are also bound by market forces, we can’t be outlier beyond a point. You can be having some premium, given the strength of the brand. But you can’t go beyond a point where you start to hurt yourself.”
He said the government should be mindful of the concerns of the industry which is preparing for 5G and other expansion. “As we respond to the government’s call to invest more money, accelerate digital vision of India, we also equally expect the government to respond by having lighter touch regulation, by making life simple for telecom companies.”
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