Be prepared to spend more on your mobile phone recharge from next month as two major telecom operators – Airtel And Vodafone Idea – Ready to hike your recharge plan prices. Airtel has already discontinued its entry level monthly prepaid plan starting at Rs 49. Base level plans now start at Rs 79 for up to 60 percent off Airtel customers. Last week, the major telecom operator increased the rate of entry-level plans for its postpaid users and corporate customers. Tariff has been increased by 30% in minimum corporate plans.
According to industry experts, Vodafone Idea is also planning to make changes to the basic prepaid plans. The cash-strapped telecom operator has changed the base level recharge price in some circles. In Maharashtra and Gujarat, Vi has reduced its Rs 49 plan to 14 days from the earlier 28 days. Vi customers will now have to pay Rs 79 for the 28-day plan in the specified regions. The leading telecom operator will soon be expanding the change to prepaid plans across the country. Following this move by Airtel, it has recently reduced the data benefits for its enterprise customers under its ‘Business Plus’ postpaid plan.
The move comes as telcos are looking at various ways to improve cash generation to meet upcoming adjusted gross revenue (AGR) dues. Vodafone Idea and Airtel are to pay the first installment of adjusted gross revenue dues of Rs 9,000 crore and Rs 4,100 crore, respectively, till March 22.
The hike will help the telecom giant improve the Average Revenue Per User (ARPU). “Bharti Airtel is increasing the tariff rate for the enterprise segment, which accounts for about 60% of postpaid users. This will boost the overall average ARPU for BAL. Going forward, we expect Bharti Airtel to report healthy top-line and bottom-line growth on the back of a strong brand, increased customer additions, and improvement in ARPU,” said Amarjit Maurya, AVP, Mid Caps, Angel Broking Limited had said earlier. .
“Bharti Airtel has increased the postpaid tariff for its corporate plans as well as its retail postpaid and select prepaid plans; By our estimates, this change in plans could result in a 3% increase in wireless EBITDA. With 20-25% ARPU growth in the postpaid category, which contributes 12% to revenue, the overall growth in revenue/EBITDA could be up to 3% – assuming 60% incremental margin for the wireless business. However, at the consolidated level, the company will see a growth of 2%. This benefit is based on the assumption that tariff hikes will be announced by peers, which will result in limited churn, and lower churn rate in the postpaid category,” Motilal Oswal said in a note that Airtel last week reduced its postpaid plans. was changed.
According to the telecom operator’s data, the total number of Airtel subscribers stood at 348.29 million in June. Vodafone Idea has 277.62 million subscribers as of May 31.
read all Breaking Newshandjob breaking news And coronavirus news Here
.