Vodafone Idea (Vi), the third-largest telecom company in the country, has made a major move. The telco has removed the Rs 99 plan from the circle of Haryana. Note that while Vi continues to offer the Rs 99 plan in other circles, it has modified the benefits of the plan in Mumbai, Gujarat and Delhi. The validity of the Rs 99 plan has been reduced from 28 days to 15 days in these circles. It is very evident that Vi is trying to boost its average revenue per user (ARPU) and is currently testing different scenarios.
The feedback and the reaction from the customers will determine what the telco does next with the Rs 99 plan. The removal of the Rs 99 plan from Haryana means that the customers don't have any plan under Rs 100 to recharge with anymore. This is what Bharti Airtel did with its Rs 99 plan. The telco has removed it from its offerings entirely, and now the cheapest recharge that an Airtel customer can make to keep his/her SIM card active is the Rs 155 plan.
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Vi's ARPU stood at Rs 135 during both Q3 and Q4 of FY23. The move would certainly bump up the ARPU marginally and would allow revenue maximisation. But this also poses a risk for Vi to lose more customers. The cash-strapped telecom operator has not been able to arrest the subscriber loss, and with the absence of 5G and fundraising, it looks unlikely that it will be able to contain the situation of subscribers leaving its networks.
Vodafone Idea's CEO, Akshaya Moondra, had said that they are planning to launch 5G, but for that, they need to get funding and equipment orders in place. If the Rs 99 plan is also not available in your circle, do let us know in the comments. It is very necessary for Vi to add subscribers and improve revenues to make a comeback.