TRAI has asked companies to make their voice and SMS plans cheaper. TRAI wants companies to give more discounts on zero data plans so that 2G subscribers like them. Let’s know the details.
Voice and SMS plans may get cheaper. According to ET report, Telecom Regulatory Authority of India (TRAI) has asked companies to make their voice and SMS plans cheaper. TRAI wants companies to give more discounts on zero data plans so that 2G subscribers like them. If the report is to be believed, in the last two days TRAI met the executives of the companies and told them to reduce the prices as well because of reduced data benefits. An official aware of the matter told ET, ‘The reduction in the price of voice-only plans should depend on the average cost of data incurred by the telecom companies.
Airtel’s voice only plans get cheaper
In response to TRAI’s directive, Bharti Airtel has again cut the prices of its two voice-only plans by 6%. The tariff is now reduced by more than 8% compared to the original bundled plans. Other telecom companies are also expected to reduce the prices of such plans. TRAI’s directive on voice and SMS only plans came into effect from January 23. Its impact on telecom companies will depend on the number of users availing the new plans. Analysts believe that since there will now be a huge difference in price between bundled and voice-only plans, there may be substantial demand for no-frills subscriptions.
2G to 4G and 5G migration will be affected
Analysts had earlier said they expect only a marginal impact as the price difference between bundled plans and voice-only plans is very low. However, with the revised cut, voice-only plans may also prove attractive for users using limited data resources. The move is also going to impact the ongoing migration of 2G users to 4G and 5G. This will potentially affect telcos’ plans to increase ARPU. Market watchers say that when a 2G user migrates to 4G, ARPU increases by 1.5x to 2x.
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