Vodafone Idea Aims To Boost ARPUs By Removing Entry-Level Postpaid Plans

Telecommunications giant Vodafone Idea has taken an action that may affect its postpaid users. According to a new report, it looks like the company is working on removing some of the affordable postpaid plans. This means that its current or potential postpaid users in the future will not be able to switch to these inexpensive offers. The report noted that Vodafone Idea seems to be following in the footsteps of its rival Bharti Airtel. Airtel also made a similar move some time back indirectly pushing its users to opt for somewhat expensive plans. The report notes that this move indicates that both Bharti Airtel and Vodafone Idea are aiming at more average revenue per user (ARPU).

The move to push postpaid customers to relatively expensive plans is interesting as it comes at the cost of subscribers. Both Airtel and Vodafone Idea are aiming at profitability and don’t mind if some users leave in the process. According to the report by The Economic Times, Vodafone Idea has started sending SMS messages. The company is only sending these messages to postpaid subscribers who have subscribed to the low value, affordable plans. As part of the message, Vodafone Idea is informing them that they have been upgraded to the Rs 399 monthly rental plan.

A recent message to an Idea customer stated that the company is upgrading them to its Nirvana 399 plan. Taking a look at the Vodafone Idea website and mobile app, it appears that the company has removed the Rs 299 plan. However, the company confirmed that it is still offering the Idea Nirvana Rs 299 plan. As noted above, this move comes months after Airtel did something similar.

A larger shift for Airtel and Vodafone Idea towards more revenue

As reported previously, Bharti Airtel also scrapped all its postpaid plans below Rs 499 while chasing higher ARPUs. The report also noted that this is part of a larger shift where these operators are trying to combat Jio. Talking about the larger shift, both companies are letting go of low-end plans that are usually used on 2G networks. This will allow Airtel and Vodafone Idea to focus their resources on 4G services. This move also comes months after these companies introduced “minimum recharge plans” for prepaid-users to generate revenue.―BGR