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Introduction of minimum recharge plans by VIL, Airtel did not lead to subscriber churn, says True Balance

January 09, 2019
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According to a survey conducted by True Balance, the introduction of minimum recharge plans by Vodafone Idea Limited (VIL) and Bharti Airtel did not negatively affect their subscribers as was predicted by industry analysts.

Earlier, VIL and Airtel had introduced smart tariff plans worth Rs 35, Rs 65 and Rs 95 to replace the regular top-up plans of Rs 10, Rs 20, Rs 30 and Rs 40. This move was aimed at removing those subscribers that were not generating any revenue for the operators, which are now aiming to improve their average revenue per user (ARPU).

Post this move, industry analysts had predicted that the telecom industry could lose up to 60 million subscribers in the next six months as the incumbents operators push their prepaid customers to opt for minimum recharge plans.

However, as per True balance’s analysis, the introduction of Rs 35 smart tariff plan led to an increase in user ratio from 12 per cent to 20 per cent. Similarly, the minimum prepaid recharge plan of Rs 65 and Rs 95 witnessed an increase to 25 per cent and 24 per cent respectively, in the user ratio.


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