Telecom tariff hike: Users will find more value in minimum recharge plans

Analysts have also revised ARPU estimates

Telecom operators — Bharti Airtel and Vodafone Idea — have announced a tariff hike of around 25% for their popular prepaid plans that have almost 60 per cent of subscribers. However, the minimum recharge plans (that subscribers need to keep the number active) have been hiked by 40 per cent. 

Lower incremental cost on prepaid plans just above the minimum recharge plans are expected to give users stronger reasons to upgrade to higher average revenue per user (ARPU) plans. 

A noticeable change has been the discontinuation of 1GB/ day data plan in favour of 1.5 GB/ day plan that costs 15-40 per cent more. Analysts note that operators have opted for higher benefits despite price premium, effectively reducing network utilisation pressure as well with lower ARPU.