Bharti Airtel Finds Its Way Back into Growth and Stability After Two Years of Data Tariff War

Bharti Airtel is one telecom operator, which has been able to witness noticeable improvements in its finances after the data tariff war and there are specific reasons for this growth

Highlights
  • Bharti Airtel has upped its ARPU from Rs 104 to Rs 123 in a single quarter
  • The telco was also able to drive higher data consumption over its network in the same period

It is very well known that the data tariff war which was started by the entry of Mukesh Ambani led telecom operator Reliance Jio, pushed the other telecom operators to the brink of losses and heavily damaged the balance sheet of these companies. However, there is one telecom operator which has managed to climb out of the pit finally and is making impressive improvements to its financial parameters and is also starting to regain its dominance. The telco we are talking about is Bharti Airtel. The Sunil Bharti Mittal led telco has managed to get stability in the market finally and has even witnessed positive influence in its financial tickers like ARPU, subscriber base, profitability, among others. Here are some of the reasons which have helped Airtel in getting back on the path of positive growth after the data tariff war.

Positive Effects on ARPU and Other Financial Metrics

The start of this positive growth for Bharti Airtel began with the introduction of the minimum recharge plans and the discontinuation of the talk time prepaid plans. After the data tariff war, the telco was experiencing meagre average revenue per user (ARPU), which is a critical industry parameter. To weed out low paying subscribers, the telecom operator decided to do away with talk time plans and introduced a minimum recharge plan starting at Rs 35 per month. This move, although pushed a lot of subscribers out of Airtel’s subscriber sheet, it also helped the telco in boosting its ARPU and paved the way for further improvement.

The proof is found in the latest financial reports of Bharti Airtel which show that the telco reported an ARPU of Rs 123 in March as opposed to the Rs 104 ARPU in December month, thus denoting an 18.6% growth. With this rise in ARPU, Bharti Airtel is only a few points behind as Reliance Jio currently boasts of an ARPU of Rs 126.2.

Bharti Airtel’s Improved Effort in Data Consumption

Not only this, but Bharti Airtel is also using other methods to bring improvement and to do that it has launched new platforms and services for the consumers. The telco recently introduced the Wynk Tube app to drive more consumer engagement and data consumption. The Wynk Tube helps the users in availing the music video for their favourite songs, and it comes with a particular target towards the vernacular audience. The telco has also launched the Airtel Books platform and has reintroduced its popular Airtel Thanks loyalty programme scheme to extend benefits to the customers and to turn them into more loyal subscribers.

There is another metric which points towards Airtel’s success, and it is average data consumption per user. For the quarter ending in March, Airtel users were consuming 11GB data per month as opposed to Reliance Jio users who were using 10.9GB in the same period. This was the first time that Airtel’s average data consumption surpassed that of Jio.

Airtel Simplifies its Tariff Portfolio and Also Ramps Up Content Offerings

Bharti Airtel now barely has less than 20 tariff plans for prepaid customers under its belt. The telco has simplified its entire tariff portfolio to make it easier for the subscribers. Vodafone Idea, on the other hand, still providing segmented recharges to the customers and confusing them. Another aspect where Airtel is shining is the content offerings; The Sunil Mittal-led telco is aggressively expanding partnerships with content providers like ZEE5, Amazon Prime, Eros Now, HOOQ and so on to provide free content to the users.

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Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

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Idea88dragonmonkNikhil Mumbai-PuneLintoSR99 Recent comment authors
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Idea88
Idea88

Airtel is bit anyyoing or bit adament to being consumer friendly plans . Rather why marketing dept is sleeping can’t they bring consumer friendly packs ? Now jio bring revolution , but next phase is to bring differentiation in plans . Those who will offer different offers under one plan – Like Amazon prime / Netflix even for prepaid users will have a first mover advantage . So, Airtel lost his senses to bring affordability in plans , to avoid this Airtel bringing Amazon prime like rs.299 plan for prepaid in 28 days . Still this rs.299 plan with Amazon… Read more »

City
Mumbai
Operator
Jio and Airtel
DTH
Tata sky
SR99
SR99

I am unable to find any plan of 2 GB/Day or 3 GB/Day for 84 days validity in airtel app.
I am getting plans of only 1.5 GB/Day for 82 days and 1 GB/Day for 84 days.
Screen shot attached.

City
Kolkata
Operator
Airtel
DTH
GTPL KCBPL
Screenshot_2019-06-14-08-25-20.png
Screenshot_2019-06-14-08-25-06.png
Screenshot_2019-06-14-08-25-30.png
Suhail | Cochin Kerala
Suhail | Cochin Kerala

Same in South,India Kerala

Bipro23
Bipro23

Go to the recharge option which is left corner in this app, now go to mobile recharge and enter ur mobile number now enter amount 499 or others( as u prefer)

IMG-20190614-WA0001.jpg
SR99
SR99

Thank you.
You are right.
Found those plan of 2 GB/Day and 3 GB/Day for 82 days.

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PicsArt_06-14-12.57.10.png
Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

Airtel cannot afford to loose customers. They will loose shut down faster than Vodafone-Idea.

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