With an aim to cater to the needs of their consumers, Airtel and Vodafone have recently launched tariff plans with 1GB data per day for 28 days. The newly launched plans are said to be 12 percent cheaper than the plans launched last week. These new plans will go head-to-head with Reliance Jio's entry-level plan that starts from Rs. 149 and offers 1GB per day for 24 days. That means 24GB data for the entire duration.
"The lower price points are, in our view, a reflection of the wallet size constraints for consumers, which we have been highlighting. The headline monthly packs are now 12 percent lower than those announced last week and 30 percent higher than earlier for Bharti and 17 percent for Jio," research firm Jefferies was quoted by Economic Times.
For the unaware, both Airtel and Vodafone-Idea didn't launch these plans earlier. At that time, the companies launched a minimum unlimited plan at Rs. 248, Rs. 249, and Rs. 199. Meanwhile, Credit Suisse said that "The Rs 219 plan for Vodafone Idea and Airtel also represents a 30 percent hike to the earlier 28 days 1GB per day plan of Rs169, representing a healthy price increase under the new pricing regime." Moreover, the firm stated that these newly launched plans will improve the APRU by 25 percent from the next financial year.
When telecom operators raised tariffs prices up to 40 percent, industry sources close to the development expected that it will boost their revenues by 20-25 percent. It is worth mentioning that the newly launched prices are highest for those who are using 1GB data per day.
The companies have also introduced many plans, which offer 1.5GB data per day. This is the first time in three years that companies have increased prices of tariffs, but Reliance Jio plans are far more attractive than their counterparts.