On entry level recharge, Airtel customers can now stay connected for a long time without worrying about their account balance. This change in prices will be effective from July 29, 2021.
Airtel has changed the postpaid plan
Bharti Airtel has revised its prepaid plans to provide more value to the customers. Under the new plan, Airtel has discontinued its entry level prepaid recharge of Rs 49. Simply put, Bharti’s tariff plans will now start at Rs 79 per month as against Rs 49 earlier and will offer customers access to four times more outgoing minutes with double data.
This change is in line with the company’s focus on offering better connectivity solutions. On entry-level recharge, Airtel customers can now stay connected for a long time without worrying about their account balance. This amendment will be effective from July 29, 2021. This is the second time that Bharti has increased the base level plan. In December 2019, it had scrapped the Rs 35 entry-level plan to replace it with the Rs 49 plan.
Most entry-level plans are subscribed by 2G users who use feature phones. With such an increase, they either leave the network or upgrade to a higher level plan, which also includes 4G plans. In both the cases, there is a jump in the average revenue of the user company.
Airtel lost 35 million users last time the price was raised
Last time, when Bharti increased the tariff level from Rs 35 to Rs 49, it lost around 35 million users, but saw an improvement in its ARPU (average revenue per user). Its current ARPU at Rs 145 is the best in the industry. Bharti has about 55 million users in the Rs 49 plan.
Since Reliance Jio, whose pre-paid tariff is on an average 15-20% lower than Bharti, by Airtel Bharti has taken bold and cautious steps to improve its tariff as well as ARPU. For example, the tariff has been increased in the post-paid segment for corporate users. Similarly, by increasing only the entry-level plans in the pre-paid segment, leaving the mid-level plans untouched, it has ensured that the majority of its users – pre-paid users comprise 95% of its total user base.
What are the options with users now
Subscribers at entry-level do not have much option to downtrade. For example, Reliance Jio has Rs 69 and Rs 39 monthly prepaid plans, but their validity is 14 days, while Bharti’s Rs 79 plan has a validity of 28 days.
Vodafone Idea has the most options available in low-cost prepaid packs. The company currently offers 6 prepaid validity packs under Rs 100 – Rs 39, Rs 49, Rs 59, Rs 65, Rs 79 and Rs 95. However, the company is also expected to increase the tariff.
Bharti Management has consistently said that it needs to raise the ARPU level in the range of Rs 200-300 per month.
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