Vodafone Idea, Airtel Expected to See Strong ARPU Gains

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.

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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.