Airtel Slashes Minimum Recharge For 28 Days By 34%; Fitch Says Jio May Increase Tariff If This Happens!

Airtel's reduction of minimum recharge for validity comes after TRAI scolded them and Vodafone over their disconnection notices.

Airtel slashes minimum recharge plans
Airtel slashes minimum recharge plans

India’s 2nd largest telecom operator: Airtel has finally responded to the hue and cry of millions of telecom users.

In a desperate move to pacify its users, Airtel has decided to slash their minimum recharge plan for 28 days by 34%, and make it Rs 23 now. Earlier, it was Rs 35.

Vodafone’s minimum recharge is still Rs 35, but analysts are predicting that they too will have to reduce the plan for validity now.

Both Airtel and Vodafone-Idea has decided to force users to do a monthly recharge, in order to keep their numbers active.

Meanwhile, Fitch Ratings have made a very bold prediction: In case Jio is able to reach a particular threshold, they may increase their tariff.

What is that threshold? Keep reading to find out more!

Airtel’s Minimum Recharge For Validity Slashed by 34%

Last month, both Airtel and Vodafone decided to sacrifice their 25 million customers, and force them to recharge every 28 days in order to keep their numbers alive. This has been done to increase their ARPU or revenue per user.

We had described them as Thugs of Telecom for forcing this on customers. We have received lots of angry comments and reactions, as users are now threatening to ditch Airtel and Vodafone-Idea, and move to Jio and BSNL.

After this hue and cry, Airtel has decided to slash their minimum recharge plan by 34%. Earlier, the minimum recharge for 28 days validity was Rs 35, which has been now reduced to Rs 23.

Under ‘Smart Recharge’, users can opt for Rs 23 plan, and get 28 days validity. However, per call would be charged at 2.5 paisa per second and local SMS at Re 1 and national SMS at Rs 1.5.

No doubt this is a very expensive plan to make a call.

Next smart recharge is Rs 35 recharge, which will get Rs 26.66 talk time, along with a validity of Rs 28 days and 100 MB Data.

Vodafone’s minimum recharge is still Rs 35.

TRAI has objected to this move, and have informed Airtel and Vodafone not to disconnect SIMs in case the user has a minimum talktime.

Also Read: Airtel, VodafoneI-Idea Disconnection: 8 Long Term Plans At Par With Reliance Jio

Fitch: Jio May Increase Tariff If This Happens

Fitch Ratings, one of the ‘Big Three credit rating agencies’ has made a bold prediction: In case Jio is able to capture 30% market share in the Indian telecom market, then they will increase their tariff.

In an exclusive interview with Financial Express, Nitin Soni, Director, Asia-Pacific Corporate Ratings, Fitch, said that the 30% threshold will convert Jio from a hunter to a farmer.

He said, “We believe that Reliance Jio will change its approach from a ‘hunter’ to a ‘farmer’ in 2019 once it has achieved over 30% of revenue market share.”

With 25 crore users, Jio is right now India’s #3 telecom player with 21% market share. 30% market share threshold can be reached by 2019 end.

As per Fitch, post 30% market share, Jio will stop discounting their plans and offer a blended, combo-package which will expensive than current standards.

Fitch also predicted that going forward, the main driving force for acquiring new customers would be: ‘quality of data experience, lower call drops and content availability.’

Do you think that Jio will increase their tariff next year? Do share your opinions and viewpoints by commenting right here!

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  1. Sunil says

    bye airtel & idea i’m gonna port my parents sims to jio . you can’t freaking force customers on your terms .

  2. Ram says

    Jio will not increase rather customers will ditch Airtel, Vodafone Idea for sure.. All plans bu Airtel, Vodafone Idea are money motivated and nothing for customers comfort… Make a note Airtel, Vodafone Idea will be ditched in next quarter as ditch pigs…

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