Bharti Airtel's 2GB data per day prepaid plans with complimentary Unlimited 5G data are driving data monetisation for the second-largest telco, with an industry-leading ARPU of Rs 245 as of Q3FY25. After the July 2024 tariff revision, Airtel, along with the industry, revised the unlimited 5G data offering on prepaid plans of 2GB data per day and above. Bharti Airtel's Vice Chairman and Managing Director (MD), Gopal Vittal, during the company's Q3FY25 earnings call, stated that data monetisation is happening with the company's 2GB per day plans with Unlimited 5G and is one of the primary drivers.
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Two Aspects of Data Monetisation
According to Vittal, Airtel's data monetisation has two aspects. One is high-end plans that offer 5G as part of unlimited data, and the second is lower-end plans where the data allowance runs out, allowing Airtel to sell an additional data pack for those few hours when the allowance runs out.
"I think this is one of the primary drivers. Data monetisation, we talk about there are two parts to it. One is higher-end plans which offer 5G as part of unlimited data. And the second is lower-end plans where the data allowance runs out and contextually you're able to sell an additional pack for those few hours where the allowances run out. Both those are in play. We have seen this as one of the drivers for accreditation onto the 2GB plus data packs," Vittal said during the call with analysts.
Clarifying an analyst's question about the demand for 2GB data, Vittal said it is the "2GB data per day with Unlimited 5G" that is the draw, and the need is pushing users to buy more of the 2GB data per day plan. He also added that there is no reason for customers to opt for anything beyond these plans because they include 2GB plus Unlimited 5G data.
Scope for Higher 5G Monetisation
Once the complimentary 5G data aligns with 4G, this will be one of the levers for Airtel's ARPU growth, as there will be greater scope for data monetisation. "Because then you will have more data monetisation," Vittal replied.
Airtel Entry-Level 2GB Data per Day Plan
Airtel's Rs 379 prepaid plan is the entry-level recharge option for customers to enjoy 2GB data per day with complimentary Unlimited 5G data. The plan includes unlimited voice calls, 100 SMS per day, and a validity of one month. Additionally, Airtel Rewards include an Apollo 24/7 Circle membership for three months, access to the Airtel Xstream app for free content, and free hellotunes. Post daily quota usage, data speed will be up to 64 Kbps. Airtel customers also get to enjoy VoLTE (HD Voice) and an AI-powered spam detection facility built into the network.
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Conclusion
For Airtel, the higher-end 2GB data per day plans, along with data packs, are key drivers for data monetisation, helping the company reach its near-term ARPU target of Rs 300. If the complimentary 'Unlimited 5G with FUP' is removed, we believe Airtel can achieve this target. As for postpaid, for now, all Airtel plans come bundled with Unlimited 5G data.
