Telecom major Bharti Airtel, on Friday, announced a steep hike in mobile tariffs, with effect from July 3, IANS reported from New Delhi.

In the unlimited voice plans, the company raised mobile tariffs from Rs 179 to Rs 199, from Rs 455 to Rs 599, and from Rs 1,799 to Rs 1,999 plan. For post-paid plans, the Rs 399 tariff plan will now be Rs 449; the Rs 499 plan will be Rs 549; the Rs 599 plan will cost Rs 699 and the Rs 999 plan will now come for Rs 1199, effective from July 3.

In a statement, Bharti Airtel said that it has maintained that the mobile average revenue per user (ARPU) needs to be above Rs 300 to enable a financially healthy business model for Telcos in India. “We believe that this level of ARPU will enable the substantial investments required in network technology and spectrum and offer a modest return on capital,” said Bharti Airtel.

Bharti Airtel’s shares went up in early morning trade by around 1 percent at Rs 1,491.

Earlier, Reliance Jio also announced a 12-27 percent hike in mobile tariffs.