Telcos Might Raise Prices Of Plans With 28 Days Validity: Report


There is no doubt that telecom operators make major revenue from prepaid plans and that why they are launching and revising their prepaid plans. The companies have come up with both long and short term plan, to improve their average revenue per user.

Telcos Might Raise Prices Of Plans With 28 Days Validity: Report


But, now a report claims that they will be focusing on increasing the price of short term plans, instead of long term ones. This move is expected to improve their ARPU. However, currently, operators are providing long term plans with 84 days of validity.

In fact, operators have raised prices recently. But industry sources close to the development said that this is not sufficient as many prepaid plans are offering 2GB data per day, unlimited calls, and messages for the 28 days.

"Telcos should move towards new plans with 5GB, 10 GB and 20 GB of data on the 28-day cycle priced at Rs 200, Rs 300 and Rs 400 a month respectively, a scenario that would add an extra Rs 50 in monthly ARPU from data users," Deutsche Bank was quoted by Economic Times.

The report reveals that the operators are likely to raise prices further by 25 to 35 percent by the end of this year. It said that operators will some take strict action to boost their revenue.

Rajan Mathews, director-general of the Cellular Operators Association of India (COAI) said: "Operators to take extreme care in ensuring they do not lose their high-margin consumers on the longer-validity plans, even if they were to tinker with price points and expand the basket of the 28-day plans with bigger data allocations."

Let's talk about the strategies operators are coming up with then Airtel stopped providing Netflix with its postpaid plans. The company used to offer three-month access to Netflix with its four plans, and now it is only providing a subscription to Amazon Prime and data rollover facility. However, the company is still providing unlimited calling with its prepaid plans. So, now we have to see that the company will put any cap on the same in the coming days.

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