Bharti Airtel has removed four prepaid recharge plans from its portfolio, including the widely used ₹299 pack, giving customers fewer low-cost choices and potentially paving the way for higher revenue per user.
The telecom company discontinued the ₹299, ₹579, ₹619 and ₹649 prepaid plans from August 12. The changes have triggered fresh speculation about a wider Airtel tariff hike, although the company has not announced any blanket increase in prepaid prices.
The ₹299 recharge has attracted the most attention because it was a popular entry-level plan offering daily data. It provided 1.5GB of data per day, unlimited calling and 100 SMS messages per day for 28 days.
With that option gone, customers wanting a similar daily-data plan are being pushed towards the ₹349 pack. The replacement costs ₹50 more, translating into a 16% increase at that price point. The ₹349 plan, however, offers 2GB of daily data, giving customers more data for the higher price.
The change means Airtel has effectively increased the minimum amount some customers need to spend for an unlimited calling plan with daily data.
But the company has not removed all affordable recharge options. The ₹199 and ₹219 plans remain available, although they provide smaller total data allowances rather than the daily-data structure that made the ₹299 pack attractive to many users. Customers who use mobile data heavily may therefore find the ₹349 plan more relevant.
The withdrawal of the four plans is also important from an investor perspective. Average revenue per user, or ARPU, is one of the most closely watched indicators for telecom companies because it shows how much revenue an operator generates from each subscriber.
JM Financial expects Airtel’s wireless ARPU to rise by around 2% as a result of the latest plan changes. The brokerage estimates that about 10% of subscribers could shift to plans costing approximately ₹50 more. Such migration would allow Airtel to earn more from its existing customer base without necessarily adding a large number of new subscribers.
The brokerage’s assessment highlights the larger significance of Airtel’s decision. The company is not simply removing a few recharge plans; it is attempting to reshape its prepaid pricing strategy.
Telecom companies have increasingly focused on monetising data consumption as smartphone users consume more streaming video, social media and other online services. At the same time, operators need higher returns to fund investments in 5G networks and other infrastructure.
Airtel’s approach could also become a template for the wider industry. If customers accept higher-priced alternatives without significantly switching operators, rivals such as Reliance Jio and Vodafone Idea could have greater room to rationalise their own prepaid plans.
However, analysts caution that the latest Airtel move should not automatically be described as a full-fledged tariff hike. India Today reported that the operator has made changes to selected plans rather than increasing prices across its entire prepaid portfolio.
There are also reports that the availability of some Airtel plans differs between telecom circles. This means customers may see different recharge options depending on their location and mobile number. Airtel’s own recharge platform allows users to check the plans available to them before making a payment.