Vodafone Idea's Rs 99 plan is an interesting option for the consumers. This is because the telco offers this super affordable plan in a day and age where the telcos are trying to raise their average revenue per user (ARPU) by increasing the cost of plans. But if you understand it closely, even the Rs 99 plan from Vi isn't cheap. It definitely will help Vi in raising ARPU, and it is actually a brilliant strategy. At the same time, we have to mention, it is necessary also for the telco to keep this plan in its offerings. Here's why.
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Vodafone Idea Rs 99 Plan and Why It is Necessary
Vodafone Idea's Rs 99 plan comes with 15 days of service validity. This plan offers 200MB of data to the useers and Rs 99 worth of voice calling. There's no outgoing SMS bundled. The plan offers calls at 2.5 paise per second. While there's no outgoing SMS, users can still text to 1900 for porting out.
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Now why is this plan necessary? This is because 2G users in India still need a plan that's under Rs 100 and can help with voice calling. They don't need data, just the voice calling minutes and active validity. But how does this still help Vi in boosting ARPU per month from prepaid subscribers? Well, do the math. If you recharge this plan twice in a month, Vi earns Rs 198. This is well above the telco's existing ARPU. Thus, while this plan looks cheap in a way, it really isn't.
Vi can't even make it cheaper. Otherwise the telco will start losing on potential revenue gains. The telecom operator needs more 4G users so that it can grow even faster, and it is definitely going in that direction.
