Next Data Tariff Hike By Telcos Could Be In the Form of Higher Priced 28 Days Plans

The tariff hike in the telecom industry towards the end of 2019 was one of the major moves that shocked the consumers of mobility services. However, it is very well known that a single data tariff hike in the industry is not going to suffice for the telecom companies. Given the gruesome situation of the telecom industry in India, the financial pressure and the debt, the telecom operators are likely to further hike tariff in the coming days. One of the ways, the telecom operators, might be doing it in the coming days is by introducing more options in the 28-days validity strata. This move could give a boost to the Average Revenue Per User (ARPU), for whose higher levels the industry has been vying for. As per an ET report, the introduction of more such higher-priced recharges could mean that the consumers opt for them instead of the 84-days recharge plan, and this might increase the churn of the customers. The churn might increase based on the facts shared by analysts who say that the subscribers on the 28-days plan are more likely to switch operators if they grow dissatisfied by the services.

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28-Days Validity Period Attractive for Higher-Priced Plans

According to the analysts, the 12% to 33% rise that has been made in the tariffs in the case of bundled services by the telecom companies, Reliance Jio, Bharti Airtel and Vodafone Idea is not going to be sufficient. For example, one of the plans which offers 2GB data in the 28 days validity period only received a 15% tariff hike to Rs 148. Deutsche Bank said that the telecom operators should introduce more options in the 28-days validity roster, which would include higher data offerings like 5GB, 10GB, and 20GB data. These offerings should then be subsequently priced at Rs 200, Rs 300, and Rs 400 respectively. These bundled plans would help the telecom operators in upping their ARPU by Rs 50.