24 September 2019 The impact from downtrading and the minimum recharge plans has largely played out in the subscriber and ARPU trends. Notably, even post the roll out of the minimum recharge program, the company has retained 50-60m of the total 100-120m low-ARPU (i.e. INR10-15) subscribers, which has driven a 3-4x rise in ARPUs. This apart, tariff upgrades (some minor tweaks in price plans/validity) and Airtel Thanks are contributing to incremental ARPUs. Even though the second quarter is seasonally weak, BHARTI is likely to benefit from TTSL merger revenue contribution and network cost efficiencies (incremental EBITDA margin at 70%). In contrast to fears, the company has witnessed only limited churn post RJios recent Jio fiber launch (35-40% of recent plan renewals were annual). In fact, the recently launched Xstream website and app (rebranded version of Airtel Thanks) offer wide content, which should further increase FTTH subscriber stickiness.