Airtel prepaid plan changes may hike average revenue per user by ₹4-12
Bharti Airtel's decision to scrap select prepaid packs could lead to a hike in average revenue per user (ARPU) in a broad range of Rs 4-12, brokerages have estimated as the telco turned to targeted plan changes to drive premiumisation and monetisation.
Some viewed the changes as selective plan rationalisation rather than an across-the-board or formal tariff hike, but said it would aid Airtel's premiumisation strategy by prompting customers to upgrade.
Recently, Bharti Airtel withdrew four prepaid plans -- Rs 299, Rs 579, Rs 619 and Rs 649 -- leaving subscribers of the popular Rs 299 plan with pricier options to choose from.
The reshuffled prepaid offering deck leaves the entry-level Rs 199 and Rs 219 plans unchanged, but it means that subscribers of the popular Rs 299 plan may now have to opt for the Rs 349 pack, translating into a price rise of about 16 per cent for them.
The brokerages - Morgan Stanley, IIFL Capital, JM Financial, and Citi - in their recent notes, have modelled .
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