Indian telecom titans to forge unique tariff plans after elections
What's the story
Reliance Jio and Bharti Airtel, India's telecom powerhouses, are crafting unique tariff strategies in the wake of the parliamentary elections. Bharti Airtel is reportedly set to hike its headline tariffs, while Jio is predicted to stimulate more data usage by enticing users to switch to premium packages. This tactic is designed to boost Jio's average revenue per user (ARPU).
Strategy
Prioritizing data usage over tariff increases
Reliance Jio is prioritizing the promotion of increased data usage over tariff hikes. The company anticipates gaining from subscriber migration from Bharti Airtel, which will strengthen its ARPU growth. With the commencement of the Indian Premier League (IPL), Jio foresees a spike in data consumption, further reinforcing its strategy.
Steps
Jio's expansion in home broadband and 5G packages
The surge in data consumption through 5G packages has prompted users to switch to superior plans for a better viewing experience. Jio is also promoting its JioFiber broadband plans by coupling them with a variety of services. Market observers note that Jio is witnessing the fastest expansion in the home broadband market, with an annual growth rate of 37.6%.
Plan
Bharti Airtel's strategy: Raising headline tariffs
Bharti Airtel is reportedly preparing to increase headline tariffs to elevate its ARPU above Rs. 200 per month. However, additional tariff hikes may be required for the company to sustain its ARPU growth. Brokerages have incorporated these tariff hikes by operators post-elections into their calculations, with many predicting Airtel will spearhead this movement.