Will Phone Recharge Become More Costly? Tariffs Are Increased by Airtel

Telecom operators can raise mobile recharge prices by 20-25 percent (mobile recharge hike). This increase will take place this year. Airtel and Idea have both stated their intentions in this regard. Both companies have stated that mobile recharge will be more expensive than it was previously. Both companies have stated that they intend to raise mobile tariffs in 2022 to increase average revenue per user (ARPU).

Attempts to Increase ARPU

Tariff plans are made expensive by telecom operators to increase the average revenue per user (ARPU). Companies argue that only by increasing ARPU will their business run smoothly and sustainably. Good service is provided to customers by increasing the ARPU. Experts believe that the ARPU in India is low, which harms the mobile network or service. The average ARPU in the Indian telecom sector is currently $ 2, which needs to be increased to $ 4 per user. This will only occur when mobile recharge plans are prohibitively expensive. This can occur even if the user or the entire system upgrades from 2G to 4G.

Airtel Tariff Increases: Prices Increased from the Least Expensive to the Most Costly Recharge Pack

Starting with the most basic prepaid mobile recharge pack, the Rs. 79 pack, after November 26, 2021, will cost Rs. 99. It offers 200MB of data and a voice tariff of one paisa per second. The Rs. 149 pack will cost Rs. 179 (a Rs. 30 increase) and will include unlimited calling, 100 SMS per day, and 2GB of data for 28 days. Another popular Airtel prepaid recharge plan, the Rs. 249 package, will cost Rs. 299 (a Rs. 50 increase) and will provide unlimited calling, 100 SMS per day, and 1.5GB/day of data for 28 days.

Moving on to the more expensive Airtel mobile recharge plans, the Rs. 449 recharge pack will cost Rs. 549 ( Rs. 100 increase) and will provide 56 days of unlimited calling, 100 SMS per day, and 2GB of data. The Rs. 598 pack will cost Rs. 719 beginning November 26, 2021, and will provide similar benefits to the Rs. 249 pack for a total of 84 days. It is important to note that Rs. 1,498 and Rs. 2,498 recharge packs will cost Rs. 1,799 and Rs. 2,999, respectively (a hike of Rs. 301 and Rs. 501). It will be interesting to see if other telecom operators in the country follow Airtel’s lead and raise their prices.

How Does Airtel’s Price Increase Compare to Other Companies?

Airtel’s Rs. 149 pack, which will now cost Rs. 179, includes 100 SMS and 2GB of data for 28 days. Vodafone Idea’s Rs.149 recharge pack includes unlimited calls, 300 SMS, and 2GB of data for 28 days. In the same way, Reliance Jio also increase the price of prepaid recharge plans

How Might Airtel’s Move Affect the Company?

Aside from allowing other telcos to raise tariffs, Airtel’s hike is unlikely to affect its 4G users because its canceled plan only offered 2G internet speeds. “By limiting the effective tariff hike to 2G customers, Airtel has ensured that its competitors cannot exploit the situation to poach its 4G customers.”

Bharti Airtel announced today that airtel prepaid recharge prices will increase by 20-25% beginning November. The telecom giant increased the price of the entry-level voice plan by 25%, while the tariff for unlimited voice bundles increased by 20% in most cases.

With the base plans, Airtel has also increased user benefits. Airtel will charge Rs 99 for voice plans, up from Rs 79 currently, with benefits such as 50% more talk time worth Rs 99, 1p/second voice tariff, and 200MB data. The plan’s validity period remains at 28 days.

The Rs 149 plan is now Rs 179, and the Rs 219 plan is now Rs 265. Airtel has also increased the price of its mobile recharge plans from Rs 249 to Rs 359. The Rs 598 plan, one of the telecom operator’s most popular, will cost Rs 719.

According to a BSE release: the company stated, “Bharti Airtel has always maintained that the Average mobile Revenue Per User (ARPU) needs to be at Rs 200, and eventually at Rs 300, to provide a reasonable return on capital that allows for a financially healthy business model.”

Conclusion

Taking into account all of the factors mentioned, the increase in airtel prepaid recharge plans is clear. Customers should double-check their plans before recharging their phones.

Read also: Benefits of Converting Jio Prepaid to Postpaid