Separately, Airtel also removed its \u20b9319 (30-day), \u20b9579, \u20b9619, and \u20b9649 prepaid plans.<\/p>\n
The 17% indirect tariff hike comes at a time when analysts had estimated that the only way for the telecom industry to improve average revenue per user (Arpu) – a key telecom metric – would be to increase tariff plans at a regular interval.<\/p>\n
Industry analysts and company insiders attribute Airtel's move primarily to shifting consumer habits, with users increasingly migrating to higher-data plans. The hike also aligns with Airtel\u2019s ongoing push to restructure tariffs to sustain average revenue per user (Arpu) and boost its return on capital employed (RoCE). In its FY26 annual report, the company highlighted lingering challenges in monetizing its 5G network.<\/p>\n
\u201cAirtel\u2019s withdrawal of the \u20b9299 and \u20b9319 plans is its first significant move in the current cycle to raise prepaid Arpu. It is not a conventional tariff hike because the \u20b9349 plan offers more data, but it forces users into a higher minimum spend,\u201d said Parag Kar, an independent telecom analyst. \u201cRemoving the \u20b9319 monthly plan is particularly saying that users who want the same 1.5 GB per day must now pay \u20b9349 for only 28 days.\u201d<\/p>\n
According to Kawoosa, investors will see this as a positive move by the telecom operator. He said competitors could follow, given that the sector is looking to improve its profitability and return on investments.<\/p>\n
In a like-to-like comparison, Jio currently has an entry-level plan of \u20b9299 plan, in which it offers 1.5 GB data per day for 28 days. Vodafone Idea has an entry-level plan of \u20b9299, in which it offers 1 GB per day data for 28 days, according to their websites.<\/p>\n
Queries emailed to Bharti Airtel, Reliance Jio and Vodafone Idea were yet to elicit a response at the time of publishing.<\/p>\n
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 \u20b9249 plan (1GB daily data) from online platforms, a move that was subsequently matched by Bharti Airtel and Vodafone Idea.<\/p>\n
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. While Airtel and Vodafone Idea pushed for another round of hikes, Jio ruled out immediate headline price increases, expressing confidence that rising 5G adoption would organically drive its Arpu growth.<\/p>\n
Airtel\u2019s leadership, however, has maintained a clear target for monetization. In March, Bharti Airtel chairman Sunil Bharti Mittal said he remained very hopeful that the company would get to \u20b9300 Arpu, with an ultimate goal of \u20b9350. "An Arpu of \u20b9350 would be the most appropriate Arpu in today's timeframe to have a sustainable, solid, financially viable telecom company,\u201d Mittal told analysts, adding that the company would keep the low-end plans affordable for all its customers, given India is a price-sensitive market. However, Airtel believes there is scope for upselling and restructuring its data packs at the mid-to-upper end, he added.<\/p>\n
Meanwhile, analysts expect a full-scale pricing revision to take a few more months. In a report, BofA Securities said it expects the next headline tariff hike around March or April 2027, following state elections scheduled for early 2027. Noting that the 2024 hikes were announced shortly after national elections, the brokerage added that "any visibility on tariff hikes would likely act as a catalyst for telco stock prices\u201d.<\/p>\n
In the June quarter (Q1), Airtel\u2019s Arpu rose 2.7% to \u20b9264 from \u20b9257 in the previous quarter. In contrast, Reliance Jio\u2019s Arpu saw a marginal increase to \u20b9215.6 from \u20b9214. Vodafone Idea\u2019s Arpu grew 1.7% to \u20b9177 (up from \u20b9174), supported by network upgrades, 2G-to-4G\/5G upgrades, and extra billing days. For comparison, as of June last year, Jio\u2019s Arpu stood at \u20b9208.8, while Airtel and Vodafone Idea reported \u20b9250 and \u20b9165, respectively.<\/p>\n
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\u2019s 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\u2019s telecom and technology sectors.<\/p>\n
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