Sunday, October 24, 2021

Vodafone Idea reduces benefits for corporate postpaid users

Airtel has stopped offering Rs199 and Rs249 postpaid plans to business users. The business postpaid plans provided by Vodafone Idea for business users started from Rs299 per month. However, it has increased to Rs499 per month. Vodafone Idea Limited (VIL) cut data benefits under the postpaid “Business Plus” plan for its corporate clients. This is following a similar move by rival Bharti Airtel.


Bharti Airtel added an entry-level postpaid plan to its corporate clients last week. They adjusted its offering to retail clients to push them to higher-priced plans. The move aims to increase the average revenue per user (ARPU).

Although Airtel has stopped offering postpaid plans for business users under Rs 199 and Rs 249, Vodafone Idea’s business postpaid plan for business users has increased from Rs 299 per month Starting from up to Rs 499 per month. Telecom operators with funding shortages also launched a 349 rupee plan and continue to provide business users with a 799 rupee plan.


After Airtel raised rates for commercial users last week, its competitors also have room to increase rates without the risk of weakening and losing market share.


Uppal added that it is more difficult to increase the rate for ordinary users because telecommunications companies cannot be sure how their users or competitors in the market will respond. “This is a huge challenge, especially for companies with liquidity issues like Vodafone Idea.”


Vodafone Idea had previously increased the postpaid rates for two high-end plans by Rs 50. The family bag worth Rs598 and Rs749 is now priced at Rs649 and Rs799, respectively.

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