Minimum Recharges Did Not Dent Subscriber Count of Bharti Airtel and Vodafone Idea: Report

The move of introducing minimum recharges from the private telecom operators like Vodafone Idea and Bharti Airtel has turned out to be surprisingly well for these carriers. ET Telecom reported that as per a new True Balance survey findings, the introduction of the new prepaid recharges hasn’t affected the subscriber base of these telecom operators. Instead, it is on the path of increasing the revenue for the incumbents. In the previous months, these private telcos namely Airtel and Vodafone Idea replaced the top-up plans with smart plans of Rs 35, Rs 65 and Rs 95. Analysts and experts had predicted that due to this move the industry might lose up to 60 million subscribers in the next six months, however, there has been no such mass weeding out of subscribers.

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No Erosion of Subscriber Base for Incumbents

The introduction of these new minimum prepaid recharge plans has set a minimum threshold for Average Revenue Per User (ARPU). The move was a well-thought step by the telcos to weed out subscribers who were not generating any revenue for the company, but owing to these new recharges which will be required to be done by the subscribers to keep their services running, telcos will be able to notice a peak in their ARPU which is a crucial industry parameter.