Airtel may lean on user upgrades as tariff hike remains elusive

With the prospect of a near-term headline tariff hike receding, Bharti Airtel‘s strategy to lift average revenue per user (Arpu) will have to centre on internal levers rather than pricing action, and the company will have to focus on upgrading feature phone users to 4G and nudging prepaid customers towards higher-value postpaid plans.

Bharti Enterprises chairman Sunil Mittal last week reiterated in Davos the industry’s need for higher tariffs, flagging Rs 300 as a desirable Arpu level for the sector.