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Wednesday, December 04, 2019

Mobile Tariff Hike - My Thoughts !

When Vodafone Idea announced their plan to hike tariff, I expect an increase of Rs 10-25 in most of plans, on 28 day validity plans. So on 84 day plan that would be Rs 30-75 increase. 

But as it shows, the increase is Rs 150 on 84-day validity plans (i.e. 3 months pack). That's nearly 40% increase. Also they proved themselves that they are hypocrites, as both incumbents separate onnet and offnet calling, just like Jio did that on the ground of IUC. 
Update: Both incumbents removed offnet call capping from their plans. 
Update 2: Jio continues to offer free Jio2Jio calling and adds some minutes for offnet calling, while Airtel and Vodafone offer unlimited calling to any network with their unlimited packs.

As they declared new revised plans on 3rd December, Jio too announced a tariff hike scheduled on 6th December. 

Jio will be the maximum Gainer !!

Jio told that they will be cheapest service provider, they could not hike tariff. With decision taken by incumbents, Jio now can blame the incumbents for market's motion of tariff hike. 

Jio is pretty much non-liable for payment due compared to incumbents, who have to shell out Rs 1 lakh crore for AGR adjusted payment due to GoI. So as the wave of tariff hike is going on, their ARPU will go up, and all will improve Jio's finance, way
better than Airtel and VIL.

Jio will declare their plans later, so they will have a look into others, and may offer cheaper tariff than incumbents with extra benefits like more data. That might kill dual SIM market, as with multiple SIM the spending will be much higher (Rs 130 to 190 on avg), and may be users shift to Jio. More customers, more revenue - Jio may have the best balance sheet among telcos in coming days. 

As operators divide onnet and offnet calls, TRAI must withdraw 6p/min IUC and make it zero with immediate effect.  

Update: If you have WiFi at home and office, grab Jio's 329 plan (84 days validity, 3000 offnet calls, 100 text/day, 6GB data). With Rs 50 coupon you can get it at Rs 279. [per day cost Rs 3.32]

1 comment:

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