Bharti Airtel ARPU Rise, Tariff Hike, and Future Plans a Big Factor
Bharti Airtel is a good company for long-term investors since the rise in its stock price came even when there’s no tariff hike and no relief provided for the sector. The telco even has adjusted gross revenue (AGR) dues to pay to the government. The company’s stock should see a major upward trend in the coming months, with tariff hikes kicking in, average revenue per user (ARPU) going upwards, and 5G services coming into the fold. But the biggest advantage for Bharti Airtel would be the exit of Vodafone Idea. Vi’s 2G customers will flock to the network of Bharti Airtel, and it would create a buzz of new low ARPU customers for the telco. With Jio’s 4G networks, there’s an entry-barrier of low-end 4G smartphones, which the telco is looking to resolve by launching the JioPhone Next on September 10, 2021, in India. With Bharti Airtel, even Reliance Jio will gain new subscribers from the downfall of Vodafone Idea.
Reliance Jio, Bharti Airtel Might Have Excellent Q2 FY22
The Q2 of FY22 might be really excellent for both Reliance Jio and Bharti Airtel. Many subscribers of Vodafone Idea will be worried about the telco’s exit based on the ongoing market news. This would result in subscribers porting their phone number from the network of Vodafone Idea to Reliance Jio and Bharti Airtel’s networks. Both the operators have been deploying additional spectrum and working relentlessly to ensure that their networks become strong enough to capacitate a large number of users without getting congested. Reliance Jio and Bharti Airtel investors will be very happy since they are benefitting from the fall of Vodafone Idea. However, it won’t be very good for the sector in the long term if Vodafone Idea has to exit and the market is majorly left with Jio and Airtel while BSNL keeps surviving at the rear. Hopefully, a relief package from the government will set things in order for the sector.
