Airtel Chief Says Tariff Increases Essential as Telecom Market Stabilises

Shashwat Sharma, managing director and chief executive of Bharti Airtel, has signalled that the timing of tariff hikes is critical as the Indian telecom market enters a period of normalisation following years of intense price competition.

Sharma's remarks come as the sector witnesses signs of stabilisation, with reduced competitive pressure creating space for operators to improve pricing structures. Airtel, India's second-largest telecom operator, views the current environment as conducive for tariff adjustments aimed at improving sector economics and ensuring sustainable growth.

Beyond tariff strategy, Airtel is making substantial infrastructure investments to strengthen its position in the data centre market. The company plans to expand its data centre capacity to 1 gigawatt, reflecting broader ambitions to diversify revenue streams beyond core telecom services and capitalise on growing demand for cloud computing and digital services.

The expansion underscores how India's major telecom players are increasingly focusing on adjacent high-margin businesses as traditional voice and data services face margin compression. For Airtel, beefing up data centre operations represents a significant growth avenue in the country's rapidly expanding digital economy.

These strategic moves position Airtel to benefit from both improved telecom sector fundamentals and the accelerating shift toward data-intensive services and digital infrastructure across India.