Bharti Airtel has hiked the pre-paid recharge plan in seven circles taking the total count to nine circles. After the tariff, customers will now have to pay Rs 155 for the recharge plan which was earlier at Rs 99. This means that now customers will have to pay Rs 56 more for a single recharge.

“In line with our focus on providing a better customer experience, we have discontinued the metered tariff and introduced an entry-level plan of Rs 155 with unlimited voice, 1 GB data and 300 SMS. Customers can now use this plan with no constraints. We believe this plan will prove greater flexibility, convenience and superior value,” said an Airtel Spokesperson as reported by CNBC Awaaz.

On the hike, Rajeev Chandrasekhar, Minister of State for the Ministry of Electronics and Information Technology, said that the rising cost is a definite concern for the government with respect to India's Digital journey.

Meanwhile, Morgan Stanley is overweight on India’s second-largest telecom player, Bharti Airtel, with a target price of Rs 860. The stock has been holding up firmly in the green.

Morgan Stanley believes there is a floor to the stock price at Rs 725 and any correction to levels of Rs 725 should be a buying opportunity.

Tariff hike is the big trigger in the telecom sector. The tariff hike has not taken place now for 13 months and the Street is worried because if it doesn’t see a tariff hike then there will be earnings downgrades.

Also read: Morgan Stanley overweight on Bharti Airtel with a target price of Rs 860

(The story will be updated with more details)

First Published:Jan 24, 2023 2:41 PM IST