Vodafone Idea Lowers Postpaid Tariffs, Can it Help Reduce Subscriber Churn

Vodafone Idea

Vodafone Idea (Vi) recently announced new postpaid plans with Vi Max branding. The telco brought in four new postpaid plans for the users. Vi has also brought back the REDX branded plan. It removed all the REDX plans from the platform a couple of days back in a silent manner. Now with the new Vi Max, postpaid plans from Vi have been loaded with additional benefits. Even the concerns around a lower amount of SMSes have been addressed by Vi. The postpaid tariffs seem to be lowered with these new plans as they offer more benefits and cost nearly the same as some of the old plans. But the question is, are these plans good enough to help with subscriber churn? Let’s find out.

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Let’s now analyse what has changed between the Old and New Postpaid plans, tabulated below. While these plans appear like a hike with the Rs 2 increment on every rental, they are actually further lowering the postpaid segment tariffs by offering additional data and unlimited night usage and other components.

Although we feel these plans will not help any significant ARPU rise, considering the nature of the postpaid segment, this is a surprising move as the management, on multiple instances, commented that the current Industry tariffs are not sustainable. With the New Plan Benefits, it is clear that the tariffs are lowered further with a Rs 2 nominal increase in plan rentals.

Also, we believe the postpaid segment of users look for Network Quality, Voice Experience, VoLTE, and Vo-Wi-Fi experience first, followed by the ‘miscellaneous’ benefits of the plans.