Bharti Airtel Tariff Plan - Open Challenge to Reliance Jio


The buzz is everywhere in the Telecom sector that Reliance Jio will be coming out with very aggressive tariff which will be bundled with cheaper device from LYF as well as device from their panel. Reliance Jio intention is to focus on the data revenue through series of data centric applications or games or services whereas offering subsidised voice or free voice.

Even Bharti Airtel Chairman Mr.Sunil Mittal also admitted that Reliance Jio entry will change the tariff dynamics of Indian mobility segment and it will take an year to settle down the dust. The impending price war will also force some of the running Telco to go for merge or will be acquired by big fish.

In the meantime, In order to create non breakable wall to protect their high APRU user Bharti Airtel came out with myPlan  Infinity. In the two plan segment, Under 1199 plan user will get free voice call , few free SMS and 1GB of 3G/4G data free along with Wink movie and music whereas under 1599; the data pack offering is increased to 5GB.

I call the proposition a master proposition as Bharti Airtel is well aware that average data consumption per user per month stands at 0.9GB and at the same time, they will promote their in-house product  which will trigger user to use higher data at the same time reduce the Bharti Airtel user acquisition price for those product by INR 50 .Bharti Airtel is also well aware that the average ARPU per user is around $3.2 on a consolidated basis but when it comes to postpaid it comes up around $10. In new plan they will increase the ARPU by $7. On  contrary, in 1599 plan, Bharti Airtel is trying to attract very heavy data user and am sure that they will be putting the new plan attached user under priority based queuing access mechanism to ensure the best QoS ( Quality of Service).
The proposed plan will also attract many prepaid users who will be willing to convert into post paid given the fixed rate as it include all the options of calling including roaming. At the same time,  In my point of view many users from other network who is not happy with their service providers will opt of Mobile Number Portability and switch over to Bharti Airtel

It will be interesting to see Reliance Jio marketing strategist movement to super counter Bharti Airtel classic move. I also believe the further delay by Reliance Jio will put Reliance Jio in difficult position to lure away high APRU userbase from competitor.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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