Incumbents' minimum ARPU plans will result in 50 mn customer base erosion

As telecom incumbents Bharti Airtel and Vodafone Idea (VIL) seek to shed their low revenue customer base to improve profitability, they are likely to witness a gradual ARPU increase even as over 50 million customers are likely to move out, say analysts.

In October, Airtel said it will stay out of the feature phone and 2G customers base competition as it continues to focus on long-term high-end customers during the second quarter results. Airtel’s strategy is to raise minimum ARPU through a revised focus on recharge plans (also starting at Rs 35) as well as the rapid roll-out of 4G