Here is why your telecom bills are rising?
Bharti Airtel and Vodafone Idea (VI) have hiked base postpaid plans for corporate users and base prepaid rates recently. Over the next five to six months, both are likely to target hikes in the 4G prepaid users segment. Analysts, though, say the next round of hikes in the 4G prepaid users segment won’t be easy as Reliance Jio is still after customers. They have recent moves to hike base postpaid plans for corporate users and base prepaid rates are a clear bid to boost Average Revenue per User (ARPU).
Airtel, Jio, BSNL, and Vi are preparing to increase their existing tariff plans. According to the Business Standard report by the Investment Information and Credit Rating Agency (ICRA), companies can once again increase their data plans package for an increase in their revenue in the coming financial year 2022-23 which will be starting from April 1.
Why have they done this?
1. Airtel, Vi want higher ARPUs i.e. Adjusted Gross Revenue (AGR)/spectrum payments coming up
2. Loss-making VI’s fundraiser stuck, needs an urgent cash-flow boost. Else they may go bankrupt
Airtel/Vi is planning to hike prepaid Smartphone user tariffs before the end of 2021 on tariffs in the next six months. The challenge for them is that Jio is planning to launch Google-partnered budget 4G smartphones.
Now this will be fun seeing whether the customers of Airtel and VI will continue with the increased data plan or they will switch to some other service.
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