Be prepared to spend more on recharging your mobile phone from next month, because the two major wireless operators, Airtel and Vodafone Idea, are preparing to increase the price of their recharge plans. The entry-level pricing plan of Rs 49 will now start at Rs 79, and the price for Airtel customers has increased by 60%. The leading telecommunications provider last week increased entry-level tariffs for contract and corporate plans by an increase of 30%.
According to industry experts, Vodafone Idea also plans to change its prepaid basic tariff. The operator changed the recharge price of the base price in several rounds. In Maharashtra and Gujarat, Vi reduced the plan of 49 rupees to 14 days instead of 28 days in advance. Vi customers must now pay 79 rupees for the 28-day plan in the aforementioned area. This leading telecommunications provider will soon change its prepaid tariff plans nationwide. Business Plus will be there post-paid tariffs for corporate customers.
Growth will help telecom giants increase average revenue per user (ARPU). “Bharti Airtel is increasing the tariffs of business units that account for about 60% of postpaid users. This will increase the average total ARPU of the BAL. Looking ahead, we expect Bharti Airtel to achieve strong sales and profit growth driven by a strong brand, new customer growth, and increased ARPU,” said Amarjeet Maurya, Vice President of Medium Capital, Angel Brokers Co. Ltd.
“Bharti Airtel has increased its post-paid tariffs for corporate tariffs and adjusted the pre-paid and post-paid tariffs for private customers; we estimate that this change in the plan may result in a 3% increase in wireless EBITDA. As the ARPU of the postpaid category grows by 20-25%, which is equivalent to 12% of revenue, the total revenue/EBITDA growth may be around 3%, which means that the additional profit rate of the mobile business is 60%. At the consolidation level, the company will have an increase of 2%. This benefit is based on the assumption that peers will announce interest rate hikes, which will lead to limited churn rates and lower churn rates in postpaid categories.” Motilal Oswal said in a report after Airtel changed its arrears plan last week.