NEW DELHI: Another round of telecom tariff hikes is likely in 2022 but will be determined by competitive dynamics, said Bharti Airtel's chief executive officer Gopal Vittal in an analyst call on Wednesday.
"We can expect another tariff hike in 2022 but not for another three to four months... It will also be determined by competitive dynamics," said Vittal, adding that the company will not hesitate to go ahead because industry tariffs were abysmally low compared to other global markets including sub-Saharan Africa.
The country's second largest carrier by customers raised its tariffs by more than 20% in November last year along with other carriers.
"Early signs of tariff increase have been encouraging and the full flow through is expected to be felt in Q4," said Vittal, adding that Airtel has seen some SIM consolidation leading to moderation in subscriber addition as customers make decisive choices in favour of their preferred brand.
"We expect this consolidation trend to correct from here on," he noted.
Vittal added that the company was aggressively looking at reducing network operating costs that have risen sharply over the last few months primarily due to high diesel prices.
He reiterated the need for 5G spectrum reserve prices to be reduced drastically, saying that the carrier will not be able to buy nationwide spectrum at rates currently recommended by the Telecom Regulatory Authority of India.
