With Airtel scrapping Rs 49 plan, Jio likely to gain traction with Rs 75 entry-level offer

File image

Bharti Airtel's move to scrap its minimum prepaid recharge plan of Rs 49 may push users towards rival Reliance Jio, whose entry-level offer starts at Rs 75.

The Rs 75 Jio prepaid plan, which has a validity of 28 days, provides users with 300 minutes of free voice call, along with 0.1 GB high-speed and 50 free SMS per day.

With Airtel discontinuing the Rs 49 plan, the minimum recharge available for the telecom company's prepaid users is of Rs 79. The plan provides users with Rs 64 of talk-time (106 minutes of voice call) and 200MB data, over a period of 28 days. It does not offer free SMS facility.

Experts, citing the above differences in Airtel and Jio's entry-level plans, opined that some of the bottom pyramid users may opt for the latter.

Also Read | Foreign brokerages keep 'buy' on Bharti Airtel following tariff hike

Although Airtel's Rs 49 plan was widely used by a significant section of the company's customer base, the telecom operator has decided to revise the rates in a bid to increase its revenue.

It remains to be seen whether Vodafone Idea (Vi), which is also expected to make similar moves to increase its ARPU, will revise its minimum prepaid recharge plans for users across India. The company had, on July 26, tweaked its monthly postpaid plan for enterprise customers.

On the other hand, Jio, which has emerged as a leader in the sector, may not increase its entry-level tariffs as it is expected to increase its userbase even if affects the rate of ARPU growth.

Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.