Even as Vodafone Idea and Bharti Airtel are planning to end the mobile connections of the subscribers with monthly spend below Rs 35 from their network, resulting in closure of more than 200 million 2G connections, there is not much to worry.
Even as Vodafone Idea and Bharti Airtel are planning to close down the mobile connections of the subscribers with monthly spend below Rs 35 from their network, resulting in closure of more than 200 million 2G connections, there is not much to worry. While Vodafone subscribers can avail new five plans where the lowest recharge is Rs 35 a month, Bharti Airtel users can subscribe to new seven pan-India plan starting at Rs 35, to keep their 2G connections running.
At present, while Bharti Airtel has about 100 million such users, Vodafone Idea hosts around 150 million subscribers.
Bharti Airtel CEO and managing director (India & South Asia) Gopal Vittal said,“ It was a substantial number that were using it either only for incoming or had got Arpus below that of the average or that of unlimited customers. The Arpu of non-unlimited is about a fourth of the Arpu of the customers who take the unlimited plan.”
“So, everybody who goes up the chain is an upside, even within the non-unlimited, because now he or she is paying a rupee in the Rs 35 a month package, so that is an upside versus those who were not paying us even a rupee, unless many of them choose instead to go to unlimited package which is also very good for us because then there is an Arpu that increases there,” he added.
Notably, If the minimum monthly recharge remains the same, Bharti Airtel’s monthly revenue from these subscribers would be Rs 100 crore. It hopes that if even half remain on the network and move to the new minimum Rs 35 a month plan, the revenue accruing from them will be Rs 175 crore a month.
Meanwhile, Vodafone Idea is also in the process of cutting down the number of its distributors by 16,000 and branded stores by 2,000 by the end of this fiscal, PTI reported citing a company document. The company plans to slash the count of its distributors from around 43,000 to 27,000 by December. Vodafone Idea has around 6,000 branded retail stores, which it plans to cut to 4,000 by March 2019, the document said.