Bharti Airtel Chairman Sunil Bharti Mittal officially set a new, aggressive Average Revenue Per User (ARPU) target of ₹350.
This revised goal marks a significant escalation from the company’s long-standing “medium-term” aspiration of ₹300. Mittal clarified that while ₹300 remains the immediate milestone, the new ₹350 target is necessary to account for the inflation that has occurred over the last eight to nine years.
The “New Normal” for Telecom Pricing
During an investor call on February 26 (unveiled in detail on March 2), Mittal emphasized that the current pricing architecture in India is unsustainable for the quality of services provided.
- Inflation Adjustment: Mittal argued that the original ₹300 goal (set nearly a decade ago) no longer reflects today’s economic reality. Adjusting for inflation, ₹350 is now the “most appropriate” target for the industry.
- Current Standing: As of Q3 FY26 (December 31, 2025), Airtel leads the industry with an ARPU of ₹259. The company is currently 15% away from its original ₹300 goal.
- The “Four Dollar” Problem: Mittal noted that it is unreasonable for heavy data consumers and business users to pay only ₹400 per month (approx. $4.40). He expects high-end users to legitimately pay $1–$2 more for high-quality, high-bandwidth services.
Strategic Levers to Reach ₹350
Airtel plans to bridge the gap through a combination of structural price corrections and user behavior shifts:
| Strategy | Action Plan |
| Tariff Hikes | Analysts anticipate a potential 15% mobile tariff increase as early as June 2026. |
| 5G Monetization | Currently “unlimited” 5G data may be restructured into coherent, paid bundles to capture value from heavy users. |
| Premiumization | Driving “upselling” at the mid-to-high end while maintaining affordability at the entry-level (feature phone to smartphone migration). |
| Fixed Wireless (FWA) | Scaling Airtel Xstream AirFiber, which has already crossed 3 million customers, to drive higher household revenue. |
Broader Business Context
The ARPU announcement coincided with Mittal sharing a succession plan for the Bharti family and detailing a massive ₹39,000 crore annual capex plan for FY27:
- India Capex: ₹30,000 crore focused on 5G, fiber, and home broadband.
- Africa Capex: ₹9,000 crore ($1 billion) to sustain strong double-digit growth.
- Data Centers: Aiming to expand capacity from 130 MW to well past 1 GW over the next few years.
- NBFC Foray: Commitment of ₹20,000 crore into Airtel Money (Airtel Finance) to leverage user data for digital lending and EMI solutions.
Market Comparison (Q3 FY26)
Airtel continues to maintain a significant lead over its competitors in terms of revenue quality:
- Airtel: ₹259
- Reliance Jio: ₹213.7
- Vodafone Idea (Vi): ₹186
