Gopal Vittal, CEO of telecom major Bharti Airtel on Wednesday (November 1), stressed on the necessity for a hike in telecom tariffs in the country, citing the industry's need to achieve sustainability, says a report by news agency PTI. He highlighted the evolving nature of 5G globally as a long-term endeavor and stated the top telco's commitment to providing a superior experience for its 5G customers, rather than solely focusing on being the fastest or largest in the 5G rollout race.
This comes a day after Airtel, on October 31, posted its consolidated net profit for the quarter ended September, which was Rs 1,340.7 crore, a decline of 37.50 per cent from Rs 2,145.2 crore in the September quarter last year.
The top Airtel executive mentioned that the telco does not believe in higher 5G tariff, but will continue to strive for overall hike in tariffs, while keeping the service most affordable and high quality.
"We also understand that the needs of different segments of customers and really don't believe in one-size-fits-all.
"For the telecom industry to continue to invest and deliver the digital vision of India, the industry needs to be viable and cross subsidisation, therefore or using the power of the balance sheet is not a sustainable proposition at the end," Vittal was quoted as saying during the Q2 earnings call.
Vibrant competition, affordable tariffs, and financial viability of the industry can all go hand in hand, he added, as per the report.
Notably, Airtel and Reliance Jio, the top two telecos in India, have been battling to capture a bigger market share with investments to the tune of billions of dollars on network infrastructure, in a bid to expand 5G network in urban areas and 4G services in the rural parts.
According to reports, earlier last month, Bharti Airtel said it has more than 50 million subscribers on its 5G service while rival Reliance Jio has more than 70 million users on its 5G network.