Reliance Jio and Bharti Airtel, India’s largest telecom operators, have withdrawn their entry-level 1 GB-per-day prepaid packs for new subscribers, effectively raising the floor on mobile tariffs. Analysts say the move signals another round of price increases this year.

1 GB packs exit the market

On Tuesday, Jio removed its ₹249 plan (1 GB per day, 28 days) from its website, MyJio app, and third-party platforms. The plan remains available at physical Jio Stores, but not for new users. Jio’s entry tariff is now ₹299 per month for 1.5 GB per day.Reports suggest Airtel will mirror the move. Its starter pack will shift from ₹249 to ₹279 for 1.5 GB per day, effectively raising costs while offering lower data value.

Vodafone Idea seems under pressure

Industry watchers expect Vodafone Idea (Vi) to follow, given its urgent need to boost average revenue per user (ARPU) and ease financial stress. Vi’s outgoing CEO, Akshaya Moondra, said the operator is already withdrawing its ₹299 (1.5 GB/day, 5G) plan in Mumbai, with a rollout to other circles in the pipeline. Analysts expect Vi to push subscribers toward higher-value 2 GB packs.

What the Industry strategy looks like

Executives and analysts say the recalibration reflects a deliberate industry strategy to reset minimum consumer spends.

“Discontinuation of entry-level prepaid packs and the shift to higher daily data packs reflect a calibrated strategy to raise the floor on consumer spends,” said Vinish Bawa, head of telecom at PwC India.

“Recalibrating tariff plans is one way to lift ARPUs, but the bigger impact will come when headline tariffs rise,” added Ankit Jain, analyst at ICRA.

Hikes are expected in 2025

The restructuring is expected to pave the way for fresh tariff hikes of 10–15% this year, without altering validity periods or overall data volumes. The last major round in late 2024 saw tariffs rise 10–21%, which boosted ARPUs but led to churn as some subscribers shifted to Bharat Sanchar Nigam Ltd (BSNL).

Telecom leaders have repeatedly argued that India’s data-heavy, low-cost packs are unsustainable. Airtel Vice-Chairman Gopal Vittal has said tariffs must rise further to ensure long-term sector health.

How will this impact users

For new customers, Jio’s cheapest plan now costs ₹299 for 1.5 GB/day, while Airtel’s starts at ₹279. Analysts hint that the issue related to the affordability factor may soar in India’s price-sensitive market, even as operators strongly promote the value-based packages based on sustainable revenue growth rather than on volume.