After Prepaid Plans getting Costly, Broadband Plans is likely to get Extortionate

After telecom providers raised prepaid plan tariffs there are rumors of postpaid and broadband plans that increase their rates have been reported. According to a report , the co-founder of a broadband firm has stated that average revenues per customer (ARPU) in broadband plan should also increase. The news agency PTI reported Tapabrata Mukherjee, who is cofounder and founder Meghbala Broadband. Meghbala Broadband who said that broadband plans must increase their prices by by 20%.

There isn’t an any official announcement from ISPs (ISPs) about the increase. Mukherjee said that nearly every ISP offers customers an unrestricted subscription to several online (OTT) platforms that offer premium plans, which adds to the pressure on costs for the ISPs. Mukherjee said that the largest ISPs include telecom companies and this is the reason why small broadband companies are experiencing difficulties.

“There is a need to increase the average revenue per user (ARPU) for broadband as well as telecom internet services,” Mukherjee stated to PTI. If the price increase for broadband plans happen, the entry-level broadband plans will cost between Rs 150 and $200 more. “This is a matter that requires lots in planning as well as careful assessment. Since broadband rates aren’t inexpensive across India,” Mukherjee added.

Analysts have also suggested that a hike in postpaid rates could be in the pipeline for the next few months. “The increase is inevitable as India is still the lowest tariff country in the world and with the increase on prepaid, postpaid is likely to follow suit,” Prashant Singhal the media and entertainment and Telecommunications (TMT) leaderat EY recently said to Financial Express. Postpaid customers comprise 5 percent of Bharti’s subscribers , and 16 percent of India mobile revenue. The report reveals the fact that there is more loyalty in the postpaid segment with less attention paid to pricing instead focusing on benefits and buying decision that do not result in a turnover, in contrast to the prepaid segment.

Of the total postpaid customers, between 50 and 60 percent are enterprise customers. 34 percent of subscribers with postpaid accounts are located in the three metros and the remaining 36 percent are in A-circles that are urban-centric. Of the companies, Vodafone Idea has the largest market share, followed by Airtel with 28 percent.

 

Airtel, Jio, and Vi have announced tariff increases in the latter part of November. The telcos have stated that the hike would improve the average user’s revenue (ARPU). Jio said that it will continue to offer the lowest prices despite the 20 % rise in prices.

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