According to the Economic Times, which cited many people with knowledge of the situation, Vodafone Idea may aggressively price its rate plans such that they are 15% less expensive than those of Reliance Jio and Bharti Airtel.
New Delhi: According to a report in the Economic Times, Vodafone Idea (Vi) plans to launch its 5G mobile broadband service in March of this year, starting the pricing war with Reliance Jio and Airtel.
According to the Economic Times, which cited many people with knowledge of the situation, Vodafone Idea may aggressively price its rate plans such that they are 15% less expensive than those of Reliance Jio and Bharti Airtel.
According to the ET report, Vi may first roll out 5G in the top 75 cities in its 17 priority circles in India.
According to an analyst cited by ET, “Telco may increase its payouts towards dealer commissions and promotional spends to lure back high-value 5G prepaid users from its bigger rivals.”
At the business’s Q1 earnings call in August of last year, VIL CEO Akshaya Moondra stated that the company was seeing a surge in users switching to BSNL as a result of the recent rate increases the company had made. According to Moondra, the business is keeping a careful eye on the situation.
The port out to BSNL has generally increased from pre-tariff hike levels, which is one of the trends we have observed and are keeping an eye on.And the reason for that is that there is a fair amount of arbitrage because they (BSNL) have not raised their pricing,” he stated.
Given VIL’s 4G coverage, Moondra believed that the hasty decisions to port out were made solely in response to tariff action and might not be sustainable in the long run.
“We are keeping an eye on this area; we anticipate that consumers accustomed to having decent coverage and 4G experience won’t be as satisfied with BSNL’s current offering.People who could have made a snap judgment on tariff activities might return. However, we will continue to monitor this area and determine what has to be done,” he stated.
Tariff increases were announced in July by major mobile carriers Jio and Airtel. Vodafone Idea increased rates by 11–24%. However, Bharat Sanchar Nigam Ltd (BSNL), a state-owned company, has not raised its pricing.
