According to a report by Fitch ratings, Bharti Airtel may raise its tariffs by 5-10 per cent in the coming months to improve its profit margins.

Fitch forecasts Airtel’s average revenue per user (ARPU) to rise by 5-10 per cent during the fiscal year 2020 as the operator is focusing on boosting profitability with the introduction of a minimum recharge plan priced at Rs 35.

While this move will help Airtel with ARPU, it will also result in growth of the telecom company’s earnings before interest, taxes, depreciation and amortisation (EBITDA). The company’s blended average tariff is also expected to rise during the financial year 2020, Fitch said.

The report also mentioned that Indian consumers are capable of shelling out more for mobile services and which is also evident by the monthly data consumption rate per user.