Key Points
Mumbai: Telecom operators Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) are taking measures, such as blocking incoming calls once the time period of the pack expires and restricting the number of data top-ups after voice validity of a plan is over, to increase their average revenue per user (ARPU) without having to raise tariffs...
However, a significant increase in ARPU will happen only when tariffs are raised, which is not expected before the general elections next year, said analysts...
"ARPU improvement initiatives from telcos are in the form of blocking incoming calls in case the customer does not top up and allowing data top-ups only thrice after the expiry of validity period of a voice & data plan," brokerage IIFL said in a recent report...
Limiting data top-ups, on the other hand, pushes customers to upgrade to higher-priced data plans with larger allocations, industry executives and analysts said.. Telcos usually offer some grace period after the validity, or expiry date of the plan, is over..
"While these measures help increase ARPU in small amounts, as is evident from the fiscal fourth-quarter numbers, only headline tariff hikes can help bring significant growth on the metric," said an analyst with a leading brokerage, who did not wish to be identified...
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