Bharti Airtel’s Attempts at Increased ARPU One of the recent moves that Bharti Airtel has adopted to bring a positive change in its ARPU is through the removal of low paying postpaid plans like Rs 399. Now the Airtel postpaid subscribers have limited choices starting from Rs 499, thus leading to a better ARPU for the company. The introduction of minimum recharge plans is also a move on similar lines, as it requires the customer to pay the company repetitively on regular intervals. Vodafone Idea Also Aims Increased ARPU Another telecom operator, Vodafone Idea, have also made similar moves in the market and have been eyeing improved ARPU since quite some time now. Vodafone Idea has also introduced minimum recharge plans for its subscribers, meaning that now customers will have to recharge their accounts once in a month to keep their services running. Vodafone has also made some changes to its postpaid plans, thus signalling a path towards increased ARPU. Furthermore, the company is providing the Rs 299 postpaid plan in just a few circles at the moment. Better ARPU Also Crucial for Reliance Jio It is also worth noting that with each passing quarter, Reliance Jio which currently is the biggest rival to Bharti Airtel, has been witnessing falling ARPU for five consecutive quarters whereas Airtel has been seeing an appreciating ARPU which is about to match Reliance Jio’s in the coming months. Analysts believe that if Reliance Jio wants to maintain the path of growth, then it will depend on an increased ARPU and massive subscriber addition. Currently, ‘Airtel’s ARPU rests at Rs 125, which is extremely close to Reliance ‘Jio’s figure of Rs 126.6. While the telcos’ attempt at increasing ARPU have largely come off in the form of postpaid portfolio revamp and introduction of minimum recharge plans, these ‘aren’t the only options. The telcos now want the subscribers to spend more and more each month so that the financial situation of the industry players can be restored. After the stabilisation of tariff prices, and industry players, a direction of better financial health seems to the appropriate pathway for telcos. As such, the companies are bound to chase an increased ARPU. Now, what ways the telcos adopt to increase their ARPU remains to be seen. Currently, the methods seem to be working in favour of the telcos.

Why is the Removal of Cheaper Postpaid Plans a Good Move for Both Telcos and the Industry  - 66