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Airtel Scraps Cheap Postpaid Plans Priced Below Rs 499 To Cut Costs, Increase ARPU And Profitability
The entry point for all Airtel postpaid subscribers is now set at Rs 499. (Pradeep Gaur /Mint via Getty Images)
Bharti Airtel has scrapped all postpaid plans below the Rs 499 mark to lower costs and increase average revenue per user (ARPU) and profitability, the Telecom Talk reports. The Sunil Bharti Mittal owned telecom operator now has only four postpaid plans.
The entry point for all Airtel postpaid subscribers is now set at Rs 499. The postpaid subscribers are around five to seven per cent of the total 284 million subscriber base of Airtel. However, they contribute about 20 to 25 per cent of their revenue.
Experts believe that by letting some subscribers, Airtel would increase their ARPU leading to higher revenue and profitability. In the last quarter, Airtel introduced minimum recharge plans and removed lower postpaid plans to boost ARPU.
The Airtel postpaid plans which are discontinued are Rs 299, Rs 399, Rs 649, Rs 1,199 and Rs 2,999 plans and would now offer plans of Rs 499, Rs 749, Rs 999 and Rs 1,599. The new plans came into effect on 1 May.
According to a person familiar with the matter, the Rs 349 plan is still in use for few users in limited circles, and it would be phased out slowly.
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