Airtel, Vodafone-Idea Likely To Launch Prepaid Plans With 30 Days Validity: Here's Why

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Airtel and Vodafone-Idea are likely to bring new tariff plans in the country. The telecom operators are expected to follow Reliance Jio and increase the validity of prepaid plans to 30 days. Notably, the new move is likely to help attract users to expensive tariff plans.

 

Airtel, Vi Likely To Launch Prepaid Plans With 30 Days Validity

"Jio is testing waters right now and has not made a big splash with announcements yet. They have not removed the 28-day plans yet. If a 30-day plan attracts customers and they are willing to pay more, then Airtel and Vi will follow suit," a senior industry executive.

Similarly, industry experts said that these plans from Jio are a decoy as the telco wants to increase revenue and margins without raising tariffs.

Reliance Jio New Freedom Plans

These comments come soon after Reliance Jio launched prepaid plans with 30 days of validity. These new plans are different from the existing packs as these come with one-month validity, unlike the earlier plans, which ship all benefits for only 28 days. These new Jio Freedom plans start from Rs. 127 and goes up to Rs. 2,397.

"Pricing of the new plans suggests that they could be a decoy to entice subscribers to switch from 1.5GB/day to 2GB/day plans. The premium on plans without daily limits offers a way to raise ARPUs and margins," brokerage firm Jefferies said in its latest report.

Notably, average revenue per user (ARPU) was the key parameter in the last quarter of the last financial year, where Jio and Airtel managed to achieve Rs. 138.2 and Rs. 145 respectively. However, Vodafone-Idea is yet to announce its Q4 results.

On the other hand, another brokerage firm Credit Suisse believes that Reliance Jio is just testing these packs before revising the existing packs. The firm added that Airtel and Vodafone-Idea might not bring new packs immediately to offer tough competition to Jio.

 

However, both firm states that this move by Jio is positive as it might increase revenues and margins. In addition, these plans are expected to boost Jio's revenue without increasing tariffs.

It is worth mentioning that these plans come at that time when telcos were planning to raise tariffs; however, the second wave of the COVID-19 has affected these plans of the telcos.

But, one should not forget that Vodafone-Idea has already increased the prices and launched benefits for the low-income group. Similarly, Jio and Airtel benefit their users, which is affecting their revenues. This means there are chances that Reliance Jio and Airtel might increase the prices of tariff packs.

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