'Need to raise data tariff but no premium for 5G services'

Airtel’s managing director and chief executive Gopal Vittal advocated for higher data tariff in India. In an interview, Vittal said while India has the lowest tariffs worldwide, it would remain so, even if it raises the average revenue per user (Arpu) from ₹200 to ₹300.

- Gulveen Aulakh

But Airtel will not charge a premium for its 5G services, and aims to start its fixed wireless access (FWA) services by next year, pricing it on a par with broadband services, he said. The telco is also open to distributing satellite services beyond OneWeb, starting June. Vittal also spoke about the possibility of diluting equity or listing Airtel Payments Bank once margins improve, and clarified it will not opt for a rights issue, citing adequate operating free cash flows to meet its current needs and for deleveraging. Edited excerpts:

Is there headroom to further raise entry-level tariffs? Or do you think it’s time to raise headline tariffs?

I think we’ve already done that(raising entry level tariffs). I feel that actually the prices for data are very compressed. That’s where there’s a big (opportunity). The low entry level prices we moved up, we are now at ₹155 but for 45 GB of data, unlimited calling, unlimited texting, at ₹230 is just way too low, that needs to go up. That’s where the bulk of the industry plays.

Considering that you’re looking at avenues to increase tariffs one way or the other, when would you take the call on pricing 5G plans separately?