Airtel and Vodafone may raise Idea tariffs.
Recently, private telecom companies (Reliance Jio, Airtel, Vodafone Idea) have increased the prices of their prepaid plans. However, the plight of mobile users does not stop there. So now companies can also increase the prices of their postpaid plans. According to a report by Financial Express, EY Prashant Singhal, leader of emerging markets technology, media and entertainment and telecommunications, said that after prepaid, the prices of postpaid plans may also go up.
According to reports, Airtel and Vodafone may raise Idea tariffs. According to Prashant Singhal, the increase in tariff is very important as rates in India are the cheapest in the world and now that prepaid has become more expensive, postpaid can also become more expensive. The special thing is that postpaid customers are not much affected by the price hike and they usually continue their plans.
Increasing the target ARPU of companies
Telecom companies have already made it clear that plan prices need to be increased to increase the average revenue per user (ARPU). Increasing the prepaid tariff will help ARPU, while increasing the postpaid plan will give the company more support. Vodafone-Idea (Vi) in particular needs it the most. Vodafone Idea’s ARPU is currently Rs 109 and Bharti Airtel’s Rs 153. The ARPU for Reliance Jio is Rs 143.6.
The cost to companies is steadily rising
Telecommunication service providers (TSPs) in India will have to spend millions of rupees to build mobile networks across India. This includes additional spectrum purchase and installation costs, research and development (R&D) services, payments, staff salaries and many more. In contrast, cheap telecom services in India allow companies to earn very little from their customers.