Bharti Airtel Limited has received a penalty notice of Rs 1,11,000 from the Department of Telecommunications (DoT) for alleged violations of subscriber verification norms. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations on January 23, 2026.

Penalty Details and Authority

The penalty notice was issued by the Department of Telecommunications, Uttar Pradesh (East) LSA, with the company receiving the communication on January 23, 2026 at 1746 hours IST. The action relates to alleged non-compliance with subscriber verification requirements under the company's license agreement.

Background of the Violation

Under the terms of its license agreement, Bharti Airtel is required to ensure adequate verification of customers before enrolling them as subscribers and comply with instructions issued by DoT in this regard. The Department of Telecommunications conducts periodic Customer Application Form (CAF) audits to confirm compliance with licensing terms and conditions.

The current penalty stems from a sample CAF audit conducted by DoT for October 2025, during which the department alleged violations of terms and conditions related to subscriber verification norms under the License Agreement.

Company's Response and Financial Impact

Bharti Airtel has decided not to contest the penalty and will proceed with payment. According to the company's disclosure, the maximum financial impact is limited to the extent of the penalty levied, which amounts to Rs 1,11,000.

The penalty amount represents a relatively minor financial impact for the telecommunications major, and the company's decision to accept the penalty without contest suggests a preference for swift resolution of the regulatory matter.

Sunil Bharti Mittal, Chairman of Bharti Enterprises, has issued a stark warning about India's telecom sector pricing strategy, calling the current ₹200 pricing model unsustainable and advocating for essential tariff repairs. Speaking at the World Economic Forum 2026 in Davos, Mittal emphasized that achieving India's digital ambitions requires a robust business model capable of supporting continuous multi-billion-dollar investments.

Current ARPU Trajectory and Target Aspirations

Bharti Airtel has witnessed significant ARPU improvement in recent years, rising from approximately ₹200 to about ₹250. However, Mittal maintains that these levels still fall short of ensuring the sector's long-term financial health.

Mittal noted that the ₹300 target was established eight or nine years ago without any inflation adjustments, making it a conservative benchmark in real terms.

Investment Requirements and Infrastructure Needs

The telecom sector's capital-intensive nature demands substantial ongoing investments across multiple areas. Mittal outlined the company's commitment to maintaining significant capital expenditure levels.

"We are not talking about investments for the faint hearted, there are billions of dollars going every year into the network, into spectrum," Mittal stated, emphasizing the need for reasonable business cases to support such investments.

Market Consolidation and Competition Dynamics

The Indian telecom landscape has undergone dramatic consolidation, reducing from 12 operators to effectively three players. Mittal expressed support for Vodafone Idea's potential comeback, stating that "three plus one is good for India" given the country's size and market requirements.

Regarding the AGR (Adjusted Gross Revenue) resolution for Vodafone Idea, Mittal indicated that Bharti Enterprises has also written to the government seeking attention on their AGR issues, focusing on reassessment and recalculation of what he termed "manifest errors."

Technology Evolution and Future Investments

Mittal outlined the company's strategic focus on emerging technologies and infrastructure development:

Data Center Expansion

• Target capacity: One gigawatt
• Timeline: Three to four years
• Current project: Large data center in Vizag with Google
• Objective: Double current capacity

Sovereign Cloud Initiative

• Partnership approach: Collaborating with IBM and Google
• Target market: Indian enterprise cloud hosting
• Current status: Already operational with marquee customers
• Expansion plans: Indian and African markets

6G Development

While acknowledging that 6G standards are still being formed and deployment remains years away, Mittal emphasized the company's role as a technology adopter focused on societal betterment rather than technology production.

AI Integration and Fraud Prevention

The company has positioned itself as a leading operator globally in spam and fraud prevention, utilizing AI to block billions of malicious messages and calls. Mittal indicated plans for expanded AI investments, particularly in data center infrastructure and sovereign cloud services.

Market Outlook and Pricing Strategy

Mittal expressed optimism about 2026 serving as a potential turning point for the telecom sector. He anticipates ARPU levels approaching ₹300 through a combination of calibrated tariff increases and more rational, value-based packaging strategies.

The chairman argued that rational pricing, supported by competition among three strong private operators, would create an optimal balance between consumer affordability and operator sustainability. He emphasized that the era of "giving everything away for ₹200" to capture market share has become unsustainable in the current consolidated market environment.