Kolkata: The next phase of telcos' bid to boost average revenue per user (ARPU) is set to be around the pricing structure, with Vodafone Idea<\/a> (Vi) and Bharti Airtel<\/a> backing the pay-as-you-use or ‘tier-based’ tariff model where mobile users with higher levels of data usage have to shell out more.

But that could be difficult to implement on ground as market leader
Reliance Jio<\/a> is believed to be opposed to the tiering of price plans—where data allowance is linked to the tariff plan—as it feels such an exercise can complicate tariff structures, confuse consumers and eventually hurt data usage.

Analysts said while the pay-as-you-use model or tier-based pricing model can boost telco revenue, it can work only if implemented collectively by all operators.

At Vi’s fiscal third-quarter earnings call on February 15, chief executive
Akshaya Moondra<\/a> said the pricing structure needs to evolve where people start paying more for using more. He had added that despite a wide range of consumption, a customer now pays the same independent of the level of usage.

“But as happens with all industries, all services whether you use electricity, water, anything which are in the nature of essential services, there's a base charge, and then there's a charge which is based on usage,” said Moondra.

Airtel<\/a> MD Gopal Vittal, in the telco’s Q3FY22 earnings call, had also underlined anomalies in India<\/a>'s compressed telecom pricing structure, noting that massive data allowances (42 GBs) in low-value prepaid plans like the Rs 299 (over a 28-day period) resulted in consumers being unable to exhaust their monthly quota, and hence, not feeling the need to upgrade to higher value plans.

Vittal, in fact, had backed what he called “a more sensible pricing architecture” like in other Asian markets such as China and Indonesia where the data limit in entry-level plans is kept low, and rises only as consumers upgrade to higher value plans. Such a pricing structure, he had said, would also drive premiumisation in the sector.

At press time,
Jio<\/a>, Airtel<\/a> and Vi did not reply to ET’s queries.

At present, most entry-to-mid range tariff packs bundle large dollops of data, unlimited local\/STD calls and a daily dose of 100 text messages.

<\/p>

\"Airtel's<\/a><\/figure>

Airtel's active user base rose despite tariff hike: Report<\/a><\/h2>

Bharti Airtel increased the minimum tariff by a whopping 56% from Rs 99 to Rs 155 in the two circles in November, before expanding to 15 more in end-January 2023, in a bid to increase its average revenue per user.<\/p><\/div>

Kolkata: The next phase of telcos' bid to boost average revenue per user (ARPU) is set to be around the pricing structure, with Vodafone Idea<\/a> (Vi) and Bharti Airtel<\/a> backing the pay-as-you-use or ‘tier-based’ tariff model where mobile users with higher levels of data usage have to shell out more.

But that could be difficult to implement on ground as market leader
Reliance Jio<\/a> is believed to be opposed to the tiering of price plans—where data allowance is linked to the tariff plan—as it feels such an exercise can complicate tariff structures, confuse consumers and eventually hurt data usage.

Analysts said while the pay-as-you-use model or tier-based pricing model can boost telco revenue, it can work only if implemented collectively by all operators.

At Vi’s fiscal third-quarter earnings call on February 15, chief executive
Akshaya Moondra<\/a> said the pricing structure needs to evolve where people start paying more for using more. He had added that despite a wide range of consumption, a customer now pays the same independent of the level of usage.

“But as happens with all industries, all services whether you use electricity, water, anything which are in the nature of essential services, there's a base charge, and then there's a charge which is based on usage,” said Moondra.

Airtel<\/a> MD Gopal Vittal, in the telco’s Q3FY22 earnings call, had also underlined anomalies in India<\/a>'s compressed telecom pricing structure, noting that massive data allowances (42 GBs) in low-value prepaid plans like the Rs 299 (over a 28-day period) resulted in consumers being unable to exhaust their monthly quota, and hence, not feeling the need to upgrade to higher value plans.

Vittal, in fact, had backed what he called “a more sensible pricing architecture” like in other Asian markets such as China and Indonesia where the data limit in entry-level plans is kept low, and rises only as consumers upgrade to higher value plans. Such a pricing structure, he had said, would also drive premiumisation in the sector.

At press time,
Jio<\/a>, Airtel<\/a> and Vi did not reply to ET’s queries.

At present, most entry-to-mid range tariff packs bundle large dollops of data, unlimited local\/STD calls and a daily dose of 100 text messages.

<\/p>

\"Airtel's<\/a><\/figure>

Airtel's active user base rose despite tariff hike: Report<\/a><\/h2>

Bharti Airtel increased the minimum tariff by a whopping 56% from Rs 99 to Rs 155 in the two circles in November, before expanding to 15 more in end-January 2023, in a bid to increase its average revenue per user.<\/p><\/div>