Even with a cheap recharge plan, it is ‘expensive’, companies that earn this way

Telecom companies in India have now stopped offering SMS with cheap prepaid recharge plans. Reliance Jio, Airtel and Wii SMS benefits are not available on call and data plans for less than Rs 100. Previously, all companies offered free SMS, but this has now been removed after updating the entry-level plan. This will be a big hit for consumers who are cheap recharging (less than 100). UPI requires SMS for services such as MNP (Mobile Number Portability), for which these customers have to pay separately.

Only one company has removed SMS
According to Gadgets360, in 2017, the Reliance Jio was priced at Rs. 98 has introduced a scheme which includes SMS facility. The company has also increased the SMS quota from 100 messages to 300 messages. But the project was later abandoned. Geo reintroduced the project in May 2021, but this time the SMS has been removed. This was followed by Airtel and then VI (Vodafone Idea) a few days later.

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Customers earn in this way
According to a Gadgets 360 report, some sources say that telecoms have taken advantage of SMS benefits with their affordable plans to increase their average revenue per user (ARPU), ie, average earnings per subscriber. A person familiar with the matter said that customers who need to send messages will either choose an additional SMS pack or choose a more expensive plan.

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Let us tell you that Reliance Jio’s average revenue per user (ARPU) in the first quarter of the financial year 2022 is Rs 138.4. In the fourth quarter results of Airtel and V2021, ARPU posted a net profit of Rs 145 and 102, respectively. This move by telecom operators is expected to affect consumers’ recharging of entry-level plans.

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