Both Reliance Jio and Vodafone Idea do not offer SMS benefits with their cheap plans. For those of you who are unaware, Jio has recently back with its Rs 98 plan. With this plan, users get 1.5GB data per day for 14 days along with unlimited voice calls and subscription to Jio apps.
However, the plan does not include any outgoing SMS benefits. Vodafone Idea has introduced two new plans of Rs 99 and Rs 109. Both the plans offer users a total of 1GB data along with unlimited voice calls and for 18 and 20 days respectively. Even both these plans do not come with any SMS benefit.
Reliance Jio and Vodafone Idea strategically do not offer outbound SMS benefits in their cheapest plans. Although the two companies have a different outlook on the market, their recent move has the same task: retaining customers. One of the biggest problems for telecom companies is not to add customers, but to retain them. When users do not find the type of telecom service they are looking for, they may want to transfer their number to the services of another operator that provides excellent services in the area.
But to port, you need to send an SMS to 1900 by typing “PORT”. But if you don’t have the benefit of SMS then you can’t do that, right?
Now, Vodafone Idea has introduced two new plans of Rs 99 and Rs 109. Both the plans offer users a total of 1GB data along with unlimited voice calls for 18 and 20 days respectively. Even both these plans do not come with any SMS benefit. Also, Vodafone Idea does not offer any separate “outgoing SMS only” benefit plan, which users can add to the Rs 99 or Rs 109 plan.
This will help both the telcos to retain low Average Revenue Per User (ARPU) subscribers as they will not be able to send an SMS for transfer.
Jio and Vi encourage customers to buy expensive plans
Further, these plans will encourage those who want to opt out of their existing Telecom Service Provider (TSP) services to buy expensive plans. But this will not lead to recurring revenue for telcos, as if customers want to transfer, they will do so by buying a prepaid plan that offers SMS benefits.
While Vi and Jio may have to retain more customers with lower ARPU, their dropout rate will remain under control. Also, there will be many customers in the low-income group who would not think of recharging with these affordable plans without the benefits of frequent SMS.
This is a strategic move by the telecom companies. I wouldn’t call it a bad or unfair move, but it was only wise on the part of the telecom operators; Since, at the end of the day, it’s a business for them. Any business operates solely for the purpose of providing services and earning profit, and Jio and Vi are no different.
It would also have been bad or unfair to remove the SMS benefit from the core plans. But these are cheap, entry-level plans. Customers who wish to transfer can still do so by purchasing a slightly more expensive prepaid plan and availing SMS benefits.
Bharti airtel offers unlimited plan without sms benefits
Bharti Airtel only offers prepaid plans under Rs 100, and this is the Rs 19 plan. Apart from this, the cheapest unlimited plan offered by the telecom company is priced at Rs 129. Airtel’s Rs 19 plan offers unlimited voice calls and 200MB data benefits for 2 days. There is no SMS benefit included in this plan. So even Airtel customers who want to transfer the services of the telco will have to buy a prepaid plan of at least Rs 129.