The month-to-month data usage of a consumer has increased because of a high allowance and that a consumer’s requirement could be much lower. Bundled Prepaid Postpaid Plans Increased 60-80%. According to ICICI Security’s report, the floor price of the telecom services is quite impressive and encouraging.
New Price: Bundled Prepaid Postpaid Plans Increased 60-80%
The telecom operators have called for a five times hike on data prices with minimum subscription charges along with free voice calls. Reliance Jio has requested special charges for Video On Demand(VOD) and other apps.
ICICI Security believes the increased charges are not chargeable for subscription-based plans as they are bit high price. The new tariff rates will be applicable to bundled plans only.
Benefits Of The Companies:
ICICI Securities believes that the operators would receive a significant increase in average revenue per user (ARPU) and revenues. ICICI Securities believes the industry could witness a compound annual growth rate (CAGR) of 16.8% by 2024 and 19.8% by 2025.
Reliance Jio is likely to increase the floor price of data by 60% to 80%. Jio in its’s consultation paper has suggested Rs 20 floor price per GB data. While Vodafone has suggested its floor price Rs 35 per GB data. Bharti Airtel has also increased its ground tariff plan to rupees 30 per GB.
The current average tariff plan is Rs 4. If the price will be doubled, consumers have to shell out five times more than they do now. The bundled plan of 1GB and 1.5 GB of data is going to increase up to 80% under the new proposed tariff.
The firm believes that increasing the tariff rates will downgrade the data usage that will decrease the data congestion. Consumers will be able to get a better network speed compared to now.
Value-Added Services :
With Reliance Jio proposing new costs, the agency believes that operators are offered with an enormous alternative to earn from a section that has not seen presently negligible earnings.
Volume Growth And Revenue Goes Hand In Hand:
The firm said the operators are providing a huge amount of data for consumer’s usage. This used to cause more network congestion.
If the tariffs reconstructed consumers have to pay for what they need.