Jio, Vodafone Idea Not Offering SMS Benefits on Cheaper Plans

This will help both the telecom operators in retaining low average revenue per user (ARPU) customers since they won’t be able to send an SMS for port out.

Jio and Vi Push Customers to Buy Expensive Plans

Further, these plans will push people who want to port out of their current telecom service provider’s (TSP’s) services’ to purchase expensive plans. But it wouldn’t result in recurring revenues for the telcos since if the customer wants to port out, he/she will do that anyway by purchasing a prepaid plan that offers SMS benefits.

Even though Vi and Jio might have to keep more of the low ARPU customers, their subscriber churn rate will be at check. Further, there will be many customers in the low-income class who wouldn’t think twice before recharging with these cheaper plans without SMS benefits again and again.

This is a strategic move from the telcos. I wouldn’t call it a bad or an unfair move, but only wise on the part of the telecom operators; since, at the end of the day, it is a business for them. Any business operates from the sole purpose of providing services and earning profits, and Jio and Vi aren’t any different.

What would have been bad or unfair was to remove SMS benefits from top plans as well. But these are entry-level and cheap plans. Customers who want to port out can still do so by purchasing a little more expensive prepaid plan and get the SMS benefits.

Bharti Airtel Offers One Unlimited Plan With No SMS Benefit

Bharti Airtel only offers one prepaid plan under Rs 100, and it is the Rs 19 plan. Apart from that, the cheapest unlimited plan that the telco has to offer comes for Rs 129. The Rs 19 plan from Airtel offers unlimited voice calling and 200MB data benefit for 2 days. This plan also doesn’t come with any SMS benefits. So even Airtel customers who want to port out of the telco’s services will at least have to purchase the Rs 129 prepaid plan.