Bharti Airtel Removes Cheaper Postpaid Plans to Boost ARPU and Profitability

Bharti Airtel made a massive change to its postpaid portfolio in the past few weeks. The Sunil Bharti Mittal led telecom operator has scrapped all the postpaid plans below the Rs 499 price mark and has halved the total number of postpaid plans to only four. As per an ET Telecom report, Bharti Airtel has carried out this step to increase its average revenue per user (ARPU), to lower costs and to boost profitability. Now the entry point for Airtel postpaid subscribers is Rs 499. It is worth noting that postpaid subscribers make up around 5-7% of the total 284 million subscriber base of Airtel but they contribute about 20-25% of revenue. As per the experts, the telco is letting go of some subscribers for higher revenue and increased profitability by an increase in ARPU.

• Make Telecom Talk My Trusted Source
• 
• 

Only 4 Postpaid Plans Remaining in Airtel Portfolio

Among the plans which have been discontinued are the Rs 299, Rs 399, Rs 649, Rs 1,199 and Rs 2,999 plans. Now Bharti Airtel only offers four plans which include the postpaid plans of Rs 499, Rs 749, Rs 999 and Rs 1599. These new plans went into effect on May 1, 2019. A person familiar with the matter also said that that the Rs 349 plan is in use for some of the users in limited circles, but it would be phased out slowly. This is in contrast to other telecom operators since Reliance Jio has only one postpaid plan whereas Vodafone Idea still offers several options to its users.