"I would say pricing today is at deeply compressed level that is why we have seen the kind of consolidation that has happened in last 12 months. This level of pricings are clearly unsustainable.
Pricing (rates) will have to lift but, at this point of time there is fight for market share and thats being driven by new entrant and therefore pricing remains compressed," Gopal Vittal, MD and CEO, India & South Asia, said during earnings call.
Sunil Bharti Mittal led telecom firm had registered a net profit of Rs 503.6 crore in the same period a year ago.
On the other hand, the new entrant Reliance Jio, which led to tariff war, today posted it's first ever profit at Rs 504 crore.
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Vittal said that customers may be willing to pay Rs 400- 500 but they can get the unilimited call and data for Rs 130 a month.
The average revenue per user of Bharti Airtel in India declined by 28.6 per cent to Rs 123 in the quarter from Rs 172 in the year-ago period.
Vittal said that Indian telecom market will soon be a three player market apart from state-run BSNL.
The company is in process of merging mobile business of Tata Teleservices (TTSL) and Telenor.
A company representative said that discussions around acquiring additional stake in Indus Tower is currently on with several entities.
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