According to equity research firm Nomura, Bharti Airtel may increase mobile tariffs by 10 to 20 per cent.Earlier, in September 2013, the operator had increased tariffs for its postpaid customers by up to 50 per cent. Bharti Airtel had increased tariffs for local and STD calls on mobile within its network from Re 0.50 per minute to Re 0.60 per minute, while tariffs for calls to landline were increased from Re 0.60 per minute to Re 0.90 per minute.
The equity research firm notes that with the growing demand for data services, Bharti Airtel is witnessing a decline in revenue from SMS services as against a significant increase in revenues from mobile internet services. Currently, the operator is generating over six times more revenue from its mobile internet service than SMS. In fact, revenues from the mobile internet services contribute to 10 per cent of the operators? total revenues.
Further, commenting on Bharti Airtel?s strategic tie-up for sharing infrastructure with Mukesh Ambani-led Reliance Jio Infocomm, Nomura states that the move demonstrates Bharti Airtel?s commitment to create a collaborative supply chain, thereby saving costs.
As regards to Bharti Airtel?s international business, Nomura forecasts that the operator is likely to exit from African markets as it has not been able to make it to the leading players? list in African markets despite taking both organic and inorganic measures for pushing growth. Currently, Bharti Airtel is the fifth largest telecom player in Africa.
