Consumers have been using their existing Vodafone, Airtel or Ideas numbers as a primary number other than a Reliance Jio simulator for free data and calls.
All major telecom operators have suffered losses since Jio arrived.
Despite the price reduction, the other telecommunications companies have yet to keep up with the competition.
Since most users only use these numbers to receive calls, companies have devised a new plan to improve average revenue per user (ARPU).
Companies have introduced valid minimum prepaid recharge packages for only a limited period.
The latest movement of Vodafone, Airtel and Idea is aimed at increasing average revenue per user. Companies now want to focus on active customers that generate revenue.
Airtel and Vodafone will be the first companies to introduce minimum recharge plans for customers to keep their connections active.
Minimum Recharge Packages: Focus on middle and Higher Level Clients
Unlike other recharge plans that came with a lifetime validity, minimum recharge packages will have limited validity.
Companies are shifting their focus to mid-level and top-tier customers, who do not change operator based on prices and do not compromise quality.
The minimum recharge packages will have limited validity. Its objective is to improve the ARPU where these operators are losing money in clients that do not generate any active income.
The minimum price of the recharge plans in Rs 100 is Rs 35, Rs 65 and Rs 95 that offer talk time and data with a validity of 28 days.
Outgoing calls will be blocked after 30 days, incoming calls after 45
If you do not recharge your Vodafone or Airtel number with any of the minimum recharge plans, your outgoing calls will be blocked after 30 days. Not only outgoing, but also incoming calls will be blocked in 45 days.
While users continue to not use any of these numbers, telecommunications operators are losing a significant portion of revenues to maintain these numbers.
Since most customers use a Reliance Jio SIM with any of their existing Airtel and Vodafone numbers just to receive calls and text messages, the new move seems inevitable.
Although these telecommunications companies can not generate any income from these users, they plan to let go of this section of users. Companies will now only focus on intermediate and higher level users who do not commit to the network through prices.
New movement to improve ARPU
The new minimum recharge plans have been specifically designed to improve average revenue per user (ARPU) for these operators. The limited validity plans will ensure an income flow for these operators.
Airtel and Vodafone no longer have plans to retain customers based on gifts and low-cost plans.
In summary, companies will block customers who do not generate any active income for them. The current minimum plan has a price of Rs 35 that offers talk time and mobile data for 28 days.
While Reliance Jio is not in the mood to give him a break at his aggressive price, it will be interesting to see how things turn out for Airtel and Vodafone in the meantime.