A major telecom tariff hike remains on the cards for later this year, according to analysts, despite Bharti Airtel already raising effective prices by scrapping its ₹299 entry-level plan to push users towards higher-priced plans. The telecom operator also removed its ₹319 (30 days), ₹579 (56 days), ₹619 (60 days), and ₹649 (56 days) prepaid plans.
The move has put Vodafone Idea in the spotlight, forcing the cash-strapped operator to choose between following suit to improve its average revenue per user (Arpu) or holding prices steady to grab market share, analysts said.
“We believe this is an advancement of the next round of tariff hikes (expected in December 2026) on select plans. For now, we are not assuming that this tariff tweak is over and above the December 2026 expected tariff hike,” analysts at IIFL Securities wrote in a note dated 12 August. “The incremental benefit from the current move will thus be limited to four months of FY27, implying a potential FY27 Arpu uptick of ₹4,” they added.
Bharti Airtel’s Arpu was ₹264 a month at the end of the June quarter. In comparison, Vodafone Idea’s Arpu was ₹177, market leader Reliance Jio’s was ₹215.8. In March, Bharti Airtel chairman Sunil Bharti Mittal said he remained very hopeful that the company would get to ₹300 Arpu, with an ultimate goal of ₹350.
“This, in our view, is a focused attempt by Bharti Airtel toward higher monetization while capitalizing on customer preferences for higher-data plans,” the Morgan Stanley note read, adding that the move could boost the operator’s Arpu by ₹8-12 on a gross basis.
Brokerage house JM Financial said if just 10% of these users upgraded to the ₹349 tier, it would boost the operator's Arpu by 2%. It also said Airtel’s move is not an across-the-board tariff hike and that a broader hike is overdue. “It must be viewed as plan modifications undertaken by telcos to push subs to upgrade to higher GB and higher Arpu plans,” they said.
In a like-to-like comparison, Jio currently has an entry-level plan of ₹299 plan with 1.5 GB of daily data for 28 days. Vodafone Idea has an entry-level plan of ₹299, in which it offers 1 GB per day data for 28 days, according to their websites. While Reliance Jio’s tariffs are generally priced at a discount to Airtel’s and Vodafone Idea’s, single-operator price changes historically trigger swift follow-up moves across the industry.
This isn't the first time in recent months that an operator has quietly phased out a budget pack. Last August, Reliance Jio removed its entry-level ₹249 plan (1GB daily data) from online platforms, a move that was subsequently matched by Bharti Airtel and Vodafone Idea.
In July 2024, telecom operators implemented their first major tariff hikes in over two years, led by Reliance Jio's 12% to 25% price increase across plans. Over the past year, however, operators have taken opposing views on further price increases.
Jatin is based in New Delhi and writes on telecom and technology with a keen interest in policy and regulation. With over five years of reporting experience across Informist Media, Financial Express and now Mint, he has extensively covered the telecom, information technology, electronics and semiconductor sectors.<br><br>A commerce graduate, Jatin's work focuses on tracking industry developments, regulatory changes and policy decisions that shape India’s evolving digital ecosystem. Over the years, he has reported on key trends and shifts across these sectors, bringing clarity to complex policy and business issues.<br><br>Known for his strong news sense, Jatin focuses on breaking stories and delivering in-depth reporting that offers readers an understanding of complex topics, policy decisions and corporate developments. His work often examines the intersection of policy and business, highlighting how regulatory decisions impact industry strategy, pricing, and consumer outcomes.<br><br>He brings a strong domain understanding for Mint and his work is widely picked up by other media firms. With a focus on accuracy and depth, he aims to break down developments into clear, accessible insights for readers, while continuing to track emerging trends shaping the future of India’s telecom and technology sectors.
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