Sunday Talk: Is Removing Prepaid Talk Time Plans a Good Move by Incumbent Telcos?

Telcos Bharti Airtel and Vodafone Idea Limited recently made a big move by removing talk time plans for prepaid users across the country. This essentially means that subscribers won’t be able to recharge with basic talk time recharges such as Rs 20, Rs 30, Rs 50 and various other denominations. While Airtel and Idea Cellular retained the Rs 10 talk time plan, Vodafone even removed that as we were not able to find the plan of same denomination on the company’s website. The talk time plans offered by telcos right now are Rs 10 (Airtel and Idea Cellular), Rs 1,000 and Rs 5,000. All the three plans come with unlimited validity.

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What are Talk Time Plans?

For the unaware, talk time plans avail a user certain amount of Balance in their account which they can use for voice calls or data or sending SMS, but they’ll be charged at standard rates. Furthermore, users can make use of these talk time balance to activate some other plans via Balance Deduction Mode. Talk Time plans exist for a long time, but finally, telcos are killing them in a bid to boost the ARPU.

While private telcos phased out the talk time plans, state-run telcos- BSNL and MTNL are still providing them to the subscribers.

What Made Telcos Done Away With Talk Time Recharges?

Well, after the entry of Reliance Jio to the Indian market, the Average Revenue Per User (ARPU) of telcos declined by a huge margin. That said, the ARPU of Jio is slightly ahead of other telcos such as Airtel and Vodafone Idea because it’s providing combo recharge plans only. You might be wondering by now- doesn’t Jio offer talk time recharges? Well yes, the telco is giving talk time recharges, but you can’t make voice calls or consume data with that talk time balance.

In order to enjoy services from Jio, you’ve to be on a combo recharge plan which starts at a price as low as Rs 19. But only a limited set of users recharge with the weekly plans of Jio. The best combo recharges on Jio network start at Rs 149 and goes all the way up to Rs 9,999 which is a yearly plan. Jio often termed that the Rs 399 recharge is the best tariff plan on its network, so most of Jio customers are recharging this plan.

The combo recharges are keeping the ARPU of Jio better than that of other telcos, and on the other hand, Airtel and Vodafone Idea are providing talk time recharges to retain the subscriber base. So to increase the ARPU, telcos made this move. Airtel recently stated that it wants to focus on premium customers by providing combo recharge plans.

Is it a Good Move from the Telcos?

While this move from telecom operators will undoubtedly increase their ARPU slightly- especially that of Vodafone Idea as the telco has over 400 million subscribers under its belt, it isn’t going well with the subscribers. If we look at Airtel and Vodafone Idea’ subscriber base, there are a lot of users who are still using feature phones and a combo plan with data benefit is useless for them.

To make the removal of talk time recharges a good move, telcos should bring an affordable open market plan offering unlimited calls, data and SMS benefits under Rs 100 like Jio’s Rs 98 prepaid recharge, so that customers can choose it in the place of some full talk time recharges such as Rs 110 or Rs 120.

What’s your view on this? Have incumbent telcos made a mistake by removing the talk time recharges? Let us know by commenting below.

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69 Comments on "Sunday Talk: Is Removing Prepaid Talk Time Plans a Good Move by Incumbent Telcos?"

 

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Nikhil Mumbai-Pune
November 5, 2018 11:39 pm 11:39 PM

I hope it will backfire them as quickly as possible.

Diana
November 5, 2018 9:30 pm 9:30 PM

Jio is going to an rotten ip backbone like bsnl as jio don’t have peering agreement with any of Indian isp except bharati airtel… Whereas bharati and Vodafone has peering with every major indian isp. So , data speeds will always be higher in airtel and vodafone than jio. . Jio don’t even have peering with google, that’s why youtube is slow on jio.. hii should atleast peer with google.

DUANE
November 5, 2018 11:12 pm 11:12 PM

Crazy logic from a crazier person.

BTW (By The Way) what is Bharathi Airtel?
You seem to be from SoutH IndHia !!!

Diana
November 6, 2018 2:18 pm 2:18 PM

Airtel isp is called Bharti Airtel. Don’t you even know that ? Check hurricane electric bgp portals. Shame on you

Rajnish | Agra
November 5, 2018 2:04 pm 2:04 PM
I am getting useless speed on primary number(Jio). I was asked by ccare to wait for 120 days on 30th June.. The situation has worsened now. After plan expiry on Jio I’ll recharge my secondary airtel number with 399 plan and wait for Jio’s infinite loop of 120 days to end. Jio is good here for voice calls only. Network Complaints on Jio are closed within a day giving fake assurances and reasons. To get listened, last time I sent port out requests from 4-5 jio numbers from my place and in the retention calls on all numbers told them… Read more »
Aniruddha Dhar|Santragachi|West Bengal
November 6, 2018 9:02 am 9:02 AM

This is the exact same thing happening with me for the last 1.5 yrs. So I have taken local cable network’s broadband connection of 50 mbps at Rs. 370 only recharge my one and only primary number jio with Rs. 98.

Faraz
November 6, 2018 11:47 am 11:47 AM

Same with me.. Jio is good @ my home & college ( they even installed JioPrivateNet @ college ).
But very poor speed at my PG room where I live, so we got 50 Mbps WiFi

Screenshot_2018-11-01-17-45-21-760_org.zwanoo.android.speedtest.png
Nikhil Mumbai-Pune
November 6, 2018 10:11 am 10:11 AM

Great decision.

Kiran Fernandes | Goa
November 5, 2018 3:24 pm 3:24 PM

You might wanna stick to Jio’s 98 plan and top up with 3gb data for 51. So you’re getting 5GB overall for the entire 28 days. It should be sufficient till Jio adds capacity and starts 4×4 MIMO on all 3 4G bands. Hopefully they’ll buy 5G spectrum ghis year, and start 5G by 2020 end.

Nikhil Mumbai-Pune
November 5, 2018 11:35 pm 11:35 PM

Why 2020 end? It will be at the start of 2020 if auction happens next year. I hope DoT allots equal 100Mhz in each of them.

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