Last month, giant telcos Bharti Airtel and Vodafone Idea increased the prepaid tariff. Now mobile bill can be expensive for postpaid customers as well. Postpaid customers are not affected much by the price hike and they usually continue with their plan. In such a situation, there is a possibility of increasing the prices of the plan in the prepaid segment as well.
Earlier, Bharti Airtel had increased the tariff for corporate users in the postpaid segment in July and changes were also made in the family plan. Talking about the giant telecom company Reliance Jio, after Bharti Airtel and Vodafone Idea, its prepaid plans have become expensive from December 1 this month. Market analysts believe that the burden on postpaid customers may also increase in the next few months.
Airtel hikes tariff, check new rates
Vodafone Idea’s rule in the postpaid segment of 22 thousand crores
- How big is the postpaid market, it can be estimated from this that according to the revenue, it is a market of about 22 thousand crores.
- According to Jefferies’ estimates, postpaid customers account for about 5 percent of the active subscribers of the entire telecom sector and telecom companies get 15 percent of their revenue from the postpaid segment.
- About 50-60 per cent of the subscribers are enterprise customers and 34 per cent of the postpaid subscribers are from the three metro cities of the country and 36 per cent are from urban-centric A-Circles. Talking about the dominance of telcos, Vodafone Idea dominates the postpaid segment with 43 per cent market share. Apart from this, Bharti Airtel has a 28 percent stake in this segment.
Vodafone Idea Tariff Hike: After Airtel, now Vodafone Idea also made mobile recharge expensive, check new rates
Less effect of postpaid plan being expensive
According to Sanjay Kapoor, technical, media and telecom consultant, it will be surprising if telecom companies do not increase postpaid tariffs. According to Kapoor, the longer the delay, the greater will be the loss of the companies. Kapoor has also been the former CEO of Bharti Airtel. According to Kapoor, if Airtel and Vodafone Idea make plans expensive for postpaid customers, their subscribers are less likely to go anywhere as brand preference and better experience matter more to them. Market analysts believe that the postpaid tariff may increase in the next few months.
Reliance Jio Prepaid: Jio is offering 20 percent cashback on pre-paid plans, see full list and details here
cheapest tariff in india
According to Emerging Markets Technology, Media & Entertainment & Telecommunications leader EY Prashant Singhal, the price hike is very important as tariffs in India are the cheapest across the globe and now postpaid can become costlier after prepaid. Bharti Airtel and Vodafone Idea have already indicated reaching an ARPU (user per average realization) of Rs 300 to maintain their strong position in the market. According to Ravinder Takkar, CIO and MD, Vodafone Idea, the ARPU of the telecom industry is around Rs 130, which was more than Rs 200 five years ago. In such a situation, the collision has targeted to reach the ARPU of Rs 200 first. The ARPU of Vodafone Idea is currently Rs 109 and that of Bharti Airtel is Rs 153. The ARPU for Reliance Jio is Rs 143.6.
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