Bharti Airtel (Airtel), India’s premier communications, on Monday announced its new prepaid tariffs by up to 25 percent with effect from November 26.

According to The Hindu Newspaper, the decision was taken to provide a reasonable return on Capital for a financially healthy business model.”

“Bharti Airtel has always maintained that the mobile Average Revenue Per User (ARPU) which needs to be at Rs. 200 and ultimately at Rs.300, to provide a reasonable return on Capital that allows for a financially healthy business model”, Airtel said.

The company hiked prepaid tariffs by 20-25 percent and data top-up plans by 20-21 percent.

Sunil Bharti Mittal, Chairman of Bharti Airtel said, In the August tariff hike was the only way forward for the telecom industry.

“We have done our bit in a limited way, we have run out of patience and we can’t be an outlier all the time,” Mittal said after a company investor call.

Airtel’s statement also said that the tariff hike would lead to “substantial investments” in infrastructure and help it in rolling out a 5G spectrum in India.