Those who Spend less than Rs 35 per Month for Airtel and Vodafone Idea Deciding to Switch off for Low Arpu(Average Realisation per User), 250 Million 2G Customers to lose their Connection.Those who Spend less than Rs 35 per Month for Airtel and Vodafone Idea Deciding to Switch off for Low Arpu(Average Realisation per User), 250 Million 2G Customers to lose their Connection.
Vodafone Idea has Around 150 Million Subscribes, while Airtel has 100 Million Subscribes who are Below Rs 35 a Month Backet. In These 250 Million Subscribes Mostly are Dual SIM users, It means that they have two Connection in mobile and they Use Lower Recharge Only for Incoming Calls Purpose. While Airtel has 7 plans beginning at Rs 35, and Vodafone Idea has Come Out with 5 plans at the Lowest recharge Rs 35 a month.
Gopal Vittal(CEO & MD of Airtel) Says that “We have About 330 Million Customers In Wireless but if you look at the Pattern of Consumption you will find that There is a very Large Number of Users. About 100 Million Users with Very Low Arpu.”
The System worked before the Introduction of Rs 35 was that the User Could not make Outgoing Calls but Can Receive Incoming Calls as long as the Plan was Valid, by making Rs 35 Recharge a month must for Staying on the Network for Both Vodafone Idea and Airtel.
The Users moves Up the Operator Whose SIM He or She is Using as Primary. This Move will see Improvement in Arpu for Both Airtel and Vodafone Idea. Airtel Reported the Arpu Rs 101 while for Vodafone Idea it is Rs 88. Jio’s Arpu is 131 because of its lowest plan comes for Rs 49 a Month.
Another Reason for the Companies to Switch off 2G Users is that the Companies want to Shut Down 2G Networks and Move Customers to 4G. By moving them to 4G bundled plan which also Improves their Arpus.