Telcos knock on postpaid subscribers to enhance ARPUs

The Indian telcos are strategically encouraging customers to switch to tier-based post-paid tariff plans. This move aims to increase average revenue per user (ARPU) by catering to mobile users with higher data usage.

Recognising the potential for revenue growth in the absence of headline tariff hikes, they are reportedly leveraging post-paid family plans. These plans offer multiple mobile connections and generous data allowances and can even come with subscriptions to popular OTT streaming apps like Netflix, Prime, and Hotstar. Airtel’s premium all-in-one Airtel Black offerings, Jio’s post-paid plans, and 5G-based fixed wireless plans are examples of this strategy.

ARPU is expected to have upticks for top telcos post-elections, driven by industry-wide tariff hikes. JM Morgan anticipates 11-12 per cent ARPU increases for Jio in FY25/26, while Citi Research estimates Airtel’s ARPUs at Rs 230 – Rs 252 in FY25/26, factoring in a 15 per cent 4G tariff hike from mid-calendar year 2024. Business Standard