Its subscriber base increased 47 percent to 105.2 million customers as on June 20.

Airtel's average revenue per user fell 20.6 percent to Rs.278 in the quarter under review from Rs.305 earned in the quarter ended March 30.

'There is a pent-up demand in rural India and rural customers are really using more,' Bharti chief executive and joint managing director Manoj Kohli told reporters.

'About 60 percent of the company's new users currently come from the rural areas,' Kohli added.