Airtel and Idea Reduce Voice Packs Validity to 27 Days To Boost Revenue

Exclusive Report: Telecom Companies Reduce Prepaid Voice Packs Validity

I was having a discussion with one of my ex-colleagues, when he shared that they have been struggling to increase the Voice revenue, due to the launch of the unlimited packs.

The opportunities to push-up customer ARPU and Realization rate are limited, due to the aggressive competition from JIO.

Airtel and Idea Reduce Voice Packs Validity

To make up for the lost revenue, they have been trying different things, and one of these is to reduce the validity of voice packs in select circles from 28 days to 27 days.

The unlimited packs still have a validity of 28 days, though Bulk minute packs and rate cutter’s validity has been reduced, to increase revenue.

Airtel and Idea have been trying the 27 days validity packs in some of the circles like Haryana, Punjab, UP-E, Himachal Pradesh.

Some of the Packs from Airtel and Idea whose validity is trimmed are as follows:

Airtel Voice Packs – Validity Reduction

Airtel Voice Products Validity Reduction
CircleMRP Product Description Current Validity Old Validity
UPERs 9All Local Calls 35 p/min27 days28 days
UPERs 21All Local Calls 30 p/min27 days28 days
UPERs 35All Local and STD calls 30 p/min27 days28 days
UPERs 197500 local+ STD minutes27 days28 days
HaryanaRs 16All STD Calls @25p/min27 days28 days
HaryanaRs 26All local/ STD calls @ 30p/min27 days28 days
HaryanaRs 19940000 Local + STD Sec27 days28 days
PunjabRs 16Local + National Calls @ 1p/sec27 days28 days

Idea Voice Packs – Validity Reduction.

Idea Voice Products Validity Reduction
CircleMRP Product Description Current Validity Old Validity
HPRs 19Local + STD @ 30p/min *Telescopic27 days28 days
HPRs 94600 local Idea Mins27 days28 days
HPRs 95350 Local STD Mins27 days28 days
HaryanaRs 24All local Calls @ 30p/min27 days28 days
HaryanaRs 29Local Idea calls @ 10p/min27 days28 days
HaryanaRs 97170 Local Mobile Mins27 days28 days
PunjabRs 16All Mobile Calls @ 1p/sec27 days28 days
PunjabRs 34STD Calls @ 25p/min27 days28 days

Pack validity and Description Source – Idea and  Airtel Official Website, iReff App.

As shared above these are some of the voice packs – bulk minutes as well as rate cutters whose validity is reduced from 28 days to 27 days by the telecom operators.

The 27 days validity is applicable for some of the packs, while other packs in the circles still have the 28 days validity.

Notably, such rollouts are usually done in the phased manner, some of the circles first do it and later on based on the pre-post analysis the results are replicated to other circles depending upon the success rate and consumer reaction.

In a case like this when there is just 1 day of validity reduction, most consumers don’t notice or mind the change.

But such a change can bring in a significant revenue uplift for the telecom operators for the prepaid voice business.

Considering few million people recharge with these packs on a monthly basis, this adds few million rupees revenue to the telecom Circle top line.

From the consumer perspective, the Validity reduction of packs from 30 days to 28 days was odd and the 27 days validity seems to be a cookie-cutter approach to earn more revenue by telecom operators.

Telecom operators long back realized that they could easily make more money by reducing the pack validity from the 30 days to 4 weeks (28 days).

Probably, Telecom media never raised this, but this is a silent way to make more money.

Base Rate Revision – A Silent Revenue Earner

Similar to when Telecom operators do a base rate revision, the tariff which is applicable when you are not on any packs.

There are millions of subscribers who make calls on the base rate (example 1.5p/sec), and when it is increased, it has a very significant effect on the top line of telecom operators.

Vodafone has yet not rolled out the validity reduction in any of the circles so far but may try it out on segmented or open market route, to test how customers and revenue respond to the change.

I have also written to Idea and Airtel for an official quote on the validity reduction, will add to the story when they revert.

Note – If you are republishing this story, please mention the source as Candytech.



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