ATATIME when telecom operators are not increasing headline tariffs, Reliance Jio is following competitor's Bharti Airtel's strategy of raising entry-level tariffs and encouraging prepaid users to move to postpaid services.
Through the move, both the telecom operators are trying to improve their average revenue per user (Arpu) to recover their outlay in rolling out 5G network.
Jio is going to phase out its entry-level postpaid tariff plan of 199 and replace it with a new, standalone plan of ₹299 - a hike of 50%. Bharti has earlier increased its entry-level plan for prepaid users by 57% to ₹155 across all the 22 circles.
Sources said that Bharti Airtel is also likely to come out with some new plans to encourage more and more prepaid users to move to postpaid plans.
Analysts said that when a prepaid customer moves to postpaid, the Arpu almost doubles. A close look at the new postpaid plans of Jio, which would come into effect from March 22, clearly shows its efforts to migrate users from prepaid to postpaid to enhance its Arpu.
This story is from the March 16, 2023 edition of Financial Express Mumbai.
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This story is from the March 16, 2023 edition of Financial Express Mumbai.
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