Bharti Airtel has increased the minimum recharge price for a 28-day mobile phone plan by 57% to Rs. 155 in Haryana and Odisha, according to the company’s website and analysts.
The company has stopped the minimum deposit plan of Rs. 99 whereby it offers 200MB of data and calls at Rs. 2.5 cents per second. In Haryana and Odisha, Airtel has now started offering Rs. Plan of 155 unlimited calling, 1GB data and 300 SMS.
According to sources closely involved with the development, the company has begun testing the new plan and is likely to roll out the same plan across India based on the results.
It has the ability to end all calling plans for 28 days with SMS and data costing less than Rs. 155. This means that even if receiving SMS service in monthly plan, customer will have to top up to their mobile phone account by Rs. 155 votes.
An email query is sent to Bharti Airtel on this issue elicited no reply.
ICICI Securities said that Bharti Airtel has begun raising the market test tax in Haryana and Odisha, and the move has both added huge upside risk to its estimates.
“Previous Rs 99 recharge had Rs. 99 very limited data and talk time value of 200 MB valid for 28 days. In contrast, Rs 155 minimum recharge is now passed for unlimited voice, 1GB data and 300 SMS This is a massive 57% increase in minimum deposit value and has been realized in the customer segment where affordability is most important “, said a report by ICICI Securities by research analysts Sanjesh Jain and Akash Kumar.
Previously, the company did a similar exercise (market test) when increasing the minimum deposit offer from Rs. 79 to Rs. 99 in selected circles by 2021, the report said.
“Bharti has taken the industry’s first step in implementing a tax increase in the current market situation. We think it will now wait for a competitive response. If it doesn’t find enough support, Bharti can may have to reinstate the R. 99 package. Then it’s hard to imagine who would take the next step towards the tax increase — and would Bharti support that? Or did Bharti ‘make an offer that rivals competition cannot refuse?’ In our view, yes,” the report said.
