Reliance Jio, Airtel Introduce Strategies To Increase APRU: Check Details Here

Reliance Jio and Airtel have adopted a new strategy to increase their average revenue per user as both have launched plans with lower data limits at higher prices. Notably, these steps have been taken after the competition has been increased in the telecom sector.

"We have indicated previously that an outright across-the-board price increase may not be easy and operators will have to widen the variety of pricing plans to effectively raise ARPU from heavy data users," said brokerage firm UBS.

Reliance Jio And Airtel New Plans Without FUP

Reliance Jio recently announced the launch of five packs, which are valid for 15 days to 365 days. These plans are priced at Rs. 127, Rs. 247, Rs. 447, Rs. 597, and Rs. 2,397. One of the plans is valid for 30 days, which ships less data than the 28 days plan of the company.

Similarly, India's second-largest telecom operator Airtel launched Rs. 456 plan, which is valid for 60 days. It ships 50GB of data, mobile edition to Amazon Prime,
Airtel Xstream app access, free hello tunes, Wynk Music, and more. These pack ships all benefits for 60 days.

This plan is similar to Jio's Rs. 447 plan, which analysts believe might be the beginning of the new tariff segment. Similarly, analysts said that India's third-largest telecom operator Vodafone-Idea is planning to increase its tariffs as its senior management has asked for the same.

In fact, these firms added that this indicates that the telcos are planning to raise tariffs soon.

"Immediate impact on ARPU won't be there since older tariffs exist. But if there is enough traction and customers prefer more validity at a higher price, then we can see an ARPU uptick of 5-10 percent over the next two quarters," one of the executives of the operator said.

It seems that these leading telecom operators want users to consume more data on weekends as limited data will force customers to choose more data packs, which will increase telcos revenue and average revenue per user.

However, there are chances that before increasing the prices of the plans, telcos might be checking the spending powers of customers after the second wave of COVID-19.