Airtel Would Be Raising Rates Following the LS Poll

By Consultants Review Team Monday, 25 March 2024

Dependency In the wake of the legislative elections, Jio and Bharti Airtel are probably going to take distinct approaches to pricing increases. Executives at the firm predict that Jio might not raise headline rates in the same way as Bharti Airtel. Rather, the business will rely on policies that encourage consumers to upgrade to more expensive plans, which will increase average revenue per user (Arpu).

Jio's pricing are less expensive than Bharti's, therefore the difference between the two will widen. In order to boost its Arpu growth, Jio, which saw its Arpu flat on a sequential basis in the October–December quarter, is hoping to benefit from Bharti's subscriber attrition. Jio is hoping for an increase in internet use with the start of the Indian Premier League. Executives stated that customers upgrade to more expensive plans in order to have a better watching experience because 5G packs have higher data usage.

Industry insiders stated that Jio is attempting to boost the uptake of its JioFiber internet package through service bundling. The realization is greater since these bundles don't include any freebies. Executives stated, "We expect Arpu to rise without going for a headline tariff hike, with users moving to higher 5G packs, higher realization from Fiber plans, and some churn from other operators."

Analyst estimates place Jio's year-over-year growth in the residential broadband category at 37.6%. According to analysts, Airtel is at a distinct place. It has already begun implementing potential rate changes in a number of programs in an effort to raise its monthly Arpu over Rs 200. If it wishes to see future increases in its Arpu, it is now forced to pursue a headline pricing hike.At now, Jio has an ArPU of Rs 182, Vodafone Idea is at Rs 145, and Airtel has the highest Arpu in the industry at Rs 208. 

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