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Wednesday, October 28, 2020

With no subscriber churn, Bharti Airtel, Vi unlikely to match Jio post-paid offers

Data relating to post-paid users of Bharti Airtel and Vodafone Idea does not suggest any subscriber churn in the post-paid segment with rivals bundling free subscription of OTTs like Netflix into their plans.

By: ENS Economic Bureau | New Delhi | October 11, 2020 12:25:21 am
Vodafone Idea rebranded itself as "Vi" and launched a new logo and a tagline. (Source: Vodafone Idea)

Bharti Airtel and Vodafone Idea (Vi) might be facing tough competition from Reliance Jio, but they are unlikely to rework their post-paid tariff plans anytime soon by either lowering rates, offering more data, or bundling them with free subscription of OTTs like Netflix to match offers by Jio.

There are valid reasons for the operators to have adopted such a stance, apart from avoiding an unnecessary tariff war that may adversely impact their realisations.

Data relating to post-paid users of Bharti Airtel and Vodafone Idea does not suggest any subscriber churn in the post-paid segment with rivals bundling free subscription of OTTs like Netflix into their plans. There was some speculation of a tariff war with Reliance Jio when it came out with a host of post-paid plans on September 22.

Jio, which earlier had only one post-paid plan (Rs 199 per month), unveiled plans starting from Rs 399 and going up to Rs 1,499. All plans come bundled with Netflix (mobile-only, single-device plan), Amazon Prime, Disney-Hotstar, and Jio TV/Saavn/Cinema. The post-paid market is worth around Rs 22,000 crore in revenue terms, as per estimates by Jefferies. FE

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