Vodafone Idea and Bharti Airtel have not got any relief when it comes to the adjusted gross revenue (AGR) dues. Both the telcos have to pay thousands of crores in AGR dues to the government as per the Supreme Court (SC) order. While it is possible for Bharti Airtel to pay the dues comfortably, the same can’t be said for Vodafone Idea, which is struggling with its financials a lot. A relief package from the government would help them quite a bit, but it won’t be nearly enough for Vi. Both the telcos are eyeing an increase in average revenue per user (ARPU) in the near term so that they don’t get any further stress on their financials.
ARPU Gain for Vodafone Idea and Bharti Airtel Should Come Soon
Both the telcos have already removed their entry-level prepaid plans of Rs 49, and now the minimum amount that a user can recharge with is Rs 79. This will help both Vodafone Idea and Bharti Airtel in increasing their ARPU.
Regardless of whether these companies are adding subscribers or losing subscribers since they have removed their base plan, they should see a marginal increase in ARPU. Further, the no daily-data limit plans introduced recently will add to the ARPU gain for the telcos since they offer less data for more money relatively when compared with the unlimited data prepaid plans.
Vodafone Idea New REDX Plans In The Right Direction
Vodafone Idea’s new REDX plans launched recently are further in the right direction. While Airtel already offered postpaid plans in the Rs 1,500 range, Vodafone Idea has just introduced new REDX plans in this range.
This will give the customers of Vi an option to buy super premium postpaid plans. These postpaid plans come with REDX benefits which are just unlike what any other operator offers to its users. With this, both Vodafone Idea and Bharti Airtel are expected to further hike the tariffs of their existing prepaid plans, and it would lead to substantial ARPU gain.
The tariff hikes have already started coming in an indirect way; thus, it won’t be long when the operators go all out. Vi has been adding 4G subscribers even though it is losing 2G/3G subscribers along the way. This will give the telco power to earn more through its 4G subscribers when it increases tariffs.
Vi’s enterprise business is also expected to grow in the medium term, which is another way for the telco to earn more money.