Do you have Airtel, Vodafone Idea prepaid connections? If yes, here's something that you should know. If you are spending less than Rs 35 per month on recharge, your connection might soon be cut.
Do you have Airtel, Vodafone Idea prepaid connections? If yes, here's something that you should know. If you are spending less than Rs 35 per month on recharge, your connection might soon be cut.
As per the latest reports, connections might soon be cut for those Vodafone-Idea and Airtel SIM subscribers who spend less than Rs 35 per month on recharge. According to the Financial Express, Vodafone-Idea and Bharti Airtel have reportedly decided to switch off the connection of subscribers with low Average Realisation Per User (ARPU).
According to a report on the Financial Express, Vodafone Idea has roughly 150 million subscribers who recharge for less than Rs 35 a month, whereas Airtel has about 100 million users in the same bracket that recharge for less than Rs 35. So, a combined total of 250 million are mostly dual-SIM users, on 2G network, and they do a lower monthly recharge, only keeping the connection for incoming calls.
“We have about 330 million customers in wireless, but if you look at the pattern of consumption across the base you will find that there is a very large number of customers, some of whom we acquired from Telenor and some that we have ourselves, about 100 million customers with very low levels of Arpu. So, these Arpus are sort of low double-digit,” Bharti Airtel CEO and managing director (India & South Asia) Gopal Vittal said as quoted by The Financial Express.
For the July-September quarter, Airtel has reported an ARPU of Rs 101, whereas Vodafone Idea has an ARPU of Rs 88. Reliance Jio, on the other hand, has reported an ARPU of Rs 131, and that is because the lowest plan from the telco is priced at Rs 49 a month. The move to have minimum recharge of Rs 35 a month should further see a boost in ARPUs for both, Airtel and Vodafone Idea.
Besides boosting ARPUs, there is one more reason for this move. Telcos want to shut down 2G networks and move to expand 4G coverage to compete with Reliance Jio.
Inputs from BGR
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