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These Telecom operators are decreasing their subscribers base in order to increase their average revenue per user i.e ARPU.
According to ET they are letting go Low-value subscribers as they can't sustain a dense, pan-India 2G network, especially because they divert the bulk of network resources, spectrum and tower assets to 4G services for combating Jio.
“Voda Idea and Airtel are focused on improving ARPU and profitability by weeding out low-value customers as they need to shore up cash generation to fund high capex requirements and deleverage balance sheets to effectively combat Jio,” Nitin Soni, director (corporates), Fitch, told ET.
They are doing this by charging a minimum recharge amount per month so that they can remove their low-paying user base.
Voda Idea & Airtel shed users, gain 18% & 25% in ARPU - The Economic Times
According to ET they are letting go Low-value subscribers as they can't sustain a dense, pan-India 2G network, especially because they divert the bulk of network resources, spectrum and tower assets to 4G services for combating Jio.
“Voda Idea and Airtel are focused on improving ARPU and profitability by weeding out low-value customers as they need to shore up cash generation to fund high capex requirements and deleverage balance sheets to effectively combat Jio,” Nitin Soni, director (corporates), Fitch, told ET.
They are doing this by charging a minimum recharge amount per month so that they can remove their low-paying user base.
Voda Idea & Airtel shed users, gain 18% & 25% in ARPU - The Economic Times
