After Airtel, Vodafone Idea reduces benefits for corporate postpaid users

Vodafone Idea Limited (VIL) Monday reduced data benefits under its ‘Business Plus’ postpaid plans for its corporate customers following a similar move by its rival .

Bharti Airtel had last week increased the entry level postpaid plan for its enterprise customers and tweaked offers to its retail ones to push them onto higher-priced plans. The move is aimed at increasing average revenue per user (ARPU)

While Airtel has discontinued postpaid plans such as Rs 199 and Rs 249 below for corporate users, Vodafone Idea’s corporate postpaid plans for corporate users start from Rs 299 per month and go upwards to Rs 499 per month.

The cash-strapped telecom operator has also introduced a Rs 349 plan and is also continuing its Rs 799 plan for corporate users.

“This was expected. After Airtel raised its rates for enterprise users, last week, its competitors too have space to raise their rates without the risk of being undercut and losing market share,” Mahesh Uppal, a telecom analyst and director of Com First (India) told ET.

Uppal added that raising tariffs for ordinary users is more difficult since telcos cannot be sure of how their users or their competitors will respond in the market. “That is a big challenge especially for cash-strapped companies like Vodafone Idea.”

Vodafone Idea said that its corporate customers will now be upgraded to the new “Business Plus Plans”, as applicable, from their subsequent billing cycles.

Vodafone Idea claimed to have bundled benefits such as mobile security, location tracking solutions, subscription to Vi Movies & TV and Disney+ Hotstar VIP for one year, as well as Vi Caller Tunes subscription, and Vi Business-Mobility platform and Vi App for easy manageability of account and plan.

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“The ‘New Normal’ has led to an inevitable surge in the use of the internet due to national lockdowns and social distancing norms. Organizations and people have now become accustomed to the new way of living – Work from Home, Learn from Home, and Entertainment from Home etc. With this, customers have also evolved with their needs and requirement of high-speed data,” Vodafone Idea’s enterprise arm said in a statement.

It should be noted that Airtel’s 5% mobile customers use postpaid connections but contribute 20% revenue towards overall mobile revenues whereas Vodafone Idea’s 7% customers use postpaid connectivity and contribute 25% revenue towards overall mobile revenues.

Vodafone Idea had previously hiked the postpaid tariff for two high-end plans by Rs 50. Its family packs worth Rs 598 and Rs 749 now cost Rs 649 and Rs 799, respectively.



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