Vodafone increases Tariff Plans, Airtel gets Expensive

Bharti Airtel: Veteran telecom company Airtel has shocked its customers. It said that it will increase the tariff by 20-25 per cent for prepaid customers from November 26. A statement to this effect was issued on Monday. Ahead of the fresh investment in 5G, the company has raised tariffs to maximize profits. Entry fee will be increased by 20 percent on voice plans and up to 25 percent on unlimited free voice call plans.  

Airtel expects the Average Revenue Per Customer (ARPU) to increase to Rs 200-300! Only then will there be a fair return on capital. This will create a healthy business model. Airtel said the increase in RPU revenue will lead to significant investments in network and spectrum acquisition. The company said, "We also believe that ARPU will enable significant investments in network spectrum." The company also said that other operators, especially the financially-strapped Vodafone Idea, are also likely to follow suit.

Airtel has increased the minimum voice tariff plan from Rs 79 to Rs 99 while making changes in prepaid voice and data bundle plans. Airtel shares rose on Monday after the announcement of fare hike. 

Vodafone Idea: On Tuesday, Vodafone Idea (Vi) has launched new tariff plans for prepaid recharge users in India. The company has increased the prices of its prepaid plans. The company stated, "the latest development will help them “address the financial stress faced by the industry.” 

After the hike, the prices of the new prepaid plans will start from Rs 99 to Rs 2,399. with Rs 219 and above prepaid Vi plans users will get unlimited benefits. The new plans will be coming into effect from November 25 onwards. 

The basic plan which used to cost Rs 79 with a validity of 28 days, will now cost Rs 99 from November 25. In a press release, the company said, "The new plans will start the process of ARPU improvement and help address the financial stress faced by the industry."