• Source:PTI
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Bharti Airtel declared a 10-21 percent hike in mobile rates on Friday, one day after its main rival Reliance Jio announced a price increase. The review in mobile rates will be effective from July 3, Airtel said in a statement. Bharti Airtel said it had stressed that the mobile average revenue per user (ARPU) should be more than Rs 300 to allow a financially healthy business model for telecom companies in India.

The telecom company said that this level of ARPU will allow the major investments necessary in network and spectrum technology and provide a moderate return on capital. Among the limitless voice plans, Airtel has hiked rates in the ballpark by around 11 percent and accordingly the prices have been revised from Rs 179 to Rs 199; From Rs 455 to Rs 509; And from Rs 1,799 to Rs 1,999.

"Bharati Airtel has maintained that mobile average per user needs to be upwards of INR 300, to enable a financially healthy business model for Telcos in India," said Bharati Airtel

In the daily tarr, if plan category, the Rs 479 plan is being revised and the price is increased to Rs 579, which is a 20 percent increase. The mobile operators' increase in mobile phone rates comes right after the 10th spectrum auction, which concluded in just two days with a muted response from the industry.

"We have ensured that there is a very modest price increase (less than 70 paise per day) on the entry-level plans, in order to eliminate any burdens on budget-challenged consumers," the telecom company stated.