Telcos turn to first recharge plans to retain loyal customers, boost gains

Move is aimed at ensuring greater SIM consolidation, boosting revenues

Incumbent telecom services providers are turning gatekeepers to keep out low-revenue subscribers after they witnessed some growth in the average revenue per user (ARPU) through minimum monthly recharge plans. 

With telecom disruptor Reliance Jio not raising tariffs, incumbents Bharti Airtel and Vodafone Idea are focusing on the minimum monthly recharge and higher first recharge offers to ensure they retain only loyal and revenue-incremental subscribers.

During the December-quarter earnings call, Vodafone Idea’s management said that instead of having multiple offers across 22 circles for new SIM cards, they had created a common acquisition plan at Rs 76. This means that the existing customers