Airtel and Jio Chase the Same Goal of High ARPU With Differing Methods

Bharti Airtel

Until now, the story of Reliance Jio and Bharti Airtel has almost run a parallel course in the industry when it comes to the highly sought after metric of Average Revenue Per User (ARPU). Bharti Airtel, the Sunil Bharti Mittal led telecom operator, has been focusing on driving up its revenue via high-quality services and high paying subscribers. At the same time, Reliance Jio has equally diversified its subscriber base with massive additions and expanding the basket of goods being offered to these subscribers, from the ultra-cheap data packets to premium, extravagant gigabit connections. However, with the latest quarter reports from Reliance Jio, the industry experts doubt if the paths of the two biggest telecom companies in India are diverged from one another. But, as per our estimates, the current methods of Reliance Jio and Bharti Airtel seems to be simply a means to an end.

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Bharti Airtel’s Focus on High Paying Consumers

Bharti Airtel, instead of introducing cheaper plans for its subscriber, has sought to take the opposite stance of increasing the prices using postpaid plans. It’s quite well known that postpaid subscribers bring in a big chunk of the revenue, and they are a better deal for the customers. Leveraging this phenomenon, Bharti Airtel has bundled all its high-ARPU services like DTH connection, broadband and postpaid plan coupled with premium services into a single banner of Airtel Black. The telecom operator has made no recent attempt to revamp its prepaid portfolio; on the contrary, it has introduced plans which are highly priced and bundle OTT benefits.