Voice-Only Plans by Airtel, Jio, and Vi Fail to Deliver Real Affordability

Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) recently introduced voice and SMS-only prepaid plans following directives from the Telecom Regulatory Authority of India (TRAI). These plans aimed to provide affordable options for users looking to keep their SIMs active without the need for data plans. However, a closer analysis reveals that these plans fall short of offering true affordability, with telcos appearing to exploit loopholes to maintain revenue streams while giving customers fewer benefits.

How Indian Telcos Exploited the Loophole

Indian telecom operators have restructured their offerings under the guise of affordability, but the pricing changes are minimal, and benefits have been stripped down. Here’s how:

Jio’s Example

• Previous Plan: Jio’s Rs 1899 plan provided 24GB of data, unlimited calls, and 3600 SMS with 336 days of validity. The average daily cost was Rs 5.65.
• New Plan: Jio’s Rs 1958 plan offers unlimited calls and 3600 SMS but no data for 365 days. The average daily cost is Rs 5.36.

The marginal cost difference of Rs 0.29/day comes at the expense of removing 24GB of data, making the new plan less value-oriented for consumers.

Airtel’s Example

• Previous Plan: Airtel’s Rs 509 plan offered 6GB of data, unlimited calling, and 100 SMS/day for 84 days, with an average daily cost of Rs 6.05.
• New Plan: Airtel’s Rs 499 plan now offers unlimited calls and 900 SMS for 84 days, reducing the average daily cost to Rs 5.94 but eliminating data benefits entirely.
• Data Option: Airtel’s Rs 548 plan, which includes 7GB of data, costs significantly more than the new Rs 499 plan.

This restructuring subtly pushes consumers who need data back into higher-priced plans.

Vi’s Example

• New Plan: Vi’s Rs 1460 plan offers 270 days of validity, unlimited calls, and 100 SMS at an average daily cost of Rs 5.40.
• Existing Option: Vi’s Rs 1999 plan includes 365 days of validity, unlimited calls, 100 SMS/day, and 24GB of data, with an average daily cost of Rs 5.47.

The difference of Rs 0.07/day between the two plans makes the new voice-only plan marginally cheaper while eliminating the data benefits.

The Reality of Voice-Only Plans

The introduction of these voice-only plans highlights an evident contradiction:

• Marginal Savings: The daily cost reductions are negligible, ranging between Rs 0.07 and Rs 0.29.
• Removed Benefits: Customers now pay nearly the same for plans with fewer features, particularly the loss of included data.

For consumers, this means reduced value despite the apparent price cuts, defeating the purpose of TRAI’s directive to make these plans more affordable.

Who Are These Plans For?

These voice-only plans are targeted at:

1. 2G Users: People using basic feature phones without the need for internet access.
2. Secondary SIM Users: Customers who keep a secondary SIM active but rely on their primary connection for data and calls.

While they serve a niche audience, the marginal cost difference compared to older plans undermines the benefit for these users.

Impact on Telcos and Consumers

For Telecom Operators

• These plans help telcos retain ARPU (Average Revenue Per User) by cutting benefits while maintaining similar pricing.
• By eliminating data, operators subtly encourage users to choose higher-priced plans, potentially boosting revenues from premium offerings.

For Consumers

• Consumers are left with fewer benefits at similar prices, effectively paying more for less.
• Those who relied on affordable plans with minimal data now face higher costs to retain similar benefits.

Conclusion

The introduction of voice and SMS-only plans by Airtel, Jio, and Vi falls short of TRAI’s goal of affordability. While marketed as cost-effective solutions, the negligible price reductions combined with the removal of data benefits offer little value to consumers. These plans ultimately reflect a strategic move by telcos to protect their revenues rather than deliver on the promise of affordability.

The question remains whether TRAI will intervene further to ensure that such plans genuinely address consumer needs without compromising value. Until then, customers must carefully evaluate their options and choose plans that align with their specific requirements.

Voice-Only Plans by Airtel, Jio, and Vi Fail to Deliver Real Affordability