Here’s how change in minimum recharge plans will affect Bharti Airtel and Vodafone-Idea

KOLKATA: Bharti Airtel’s mobile services revenue in India is likely to see modest sequential growth in the quarter to June while Vodafone Idea’s is slated to stay flattish as the impact of the minimum recharge plans is believed to have subsided substantially, said analysts.
Kotak Institutional Equities said “the minimum recharge construct (MRC) offers no further material on-quarter revenue uplift,” anymore for Bharti Airtel and Vodafone Idea, which is likely to be reflected in “a steady and unexciting quarter for the two wireless players” in the April-June period.
Over the past two quarters, Vodafone Idea and Bharti Airtel had taken recourse to minimum recharge plans to weed out non revenue generating customers and boost average revenue per user (Arpu) which is a key performance metric.