2 weeks ago
Airtel phases out Rs 299 plan, signals industry-wide tariff shift
An internet and phone company in India called Airtel removed some of its cheaper data plans.
One of the removed plans cost Rs 299 and gave 1GB of internet every day.
The company wants people to buy more expensive plans instead.
A report from Axis Securities says other companies will likely do the same thing.
This is part of a change where phone companies focus on getting more money from each customer.
Airtel now earns Rs 264 per customer on average, more than it did before.
Airtel and Jio are also offering new things like cloud services and data centres.
These new businesses help them earn money beyond monthly phone recharges.
Vodafone Idea is not doing as well and is the exception to this trend.
This could mean cheaper phone plans become harder to find in the future.
Bharti Airtel discontinued several cheaper prepaid data packs, including a Rs 299 plan offering 1GB per day.
Axis Securities expects the shift toward premium plans to continue through the rest of the financial year.
Airtel's ARPU rose to Rs 264 in the June quarter, up 5.6% year on year, while Jio's ARPU stood at Rs 216.
Airtel posted its highest-ever quarterly postpaid additions, and 5G capex intensity is expected to moderate.
Airtel and Jio are diversifying into payments, cloud, data centres and AI, while Vodafone Idea remains the exception with lagging finances.
- Who
- Bharti Airtel, Reliance Jio and Vodafone Idea, with analysis from Axis Securities
- What
- Airtel discontinued cheaper prepaid data packs, including a Rs 299 plan offering 1GB a day, signaling an industry shift toward ARPU growth and premiumisation
- Where
- India
- When
- Earlier this week, with ARPU figures reported for the June quarter
- Why
- Operators are moving from subscriber-volume growth to premium plans and new business lines to lift revenue as 5G investment moves toward monetisation
Key facts
- Discontinued plan
- Rs 299 prepaid plan with 1GB data per day
- Airtel ARPU (June quarter)
- Rs 264, up 5.6% year on year
- Jio ARPU
- Rs 216
- Report source
- Axis Securities
- Airtel postpaid additions
- Highest-ever quarterly additions
- Nxtra customers added (June quarter)
- 11
- Nxtra long-term capacity target
- 1 gigawatt
- Vodafone Idea status
- Exception; financial position lags peers




