3 weeks ago
Airtel withdraws four prepaid plans in push to boost ARPU
Airtel is one of the biggest phone companies in India.
It sells prepaid plans, which people pay for before they use their phone service.
Airtel has stopped selling four of its plans, including the very popular Rs 299 plan.
That plan gave customers about 1 GB or 1.5 GB of internet data every day for 28 days.
People who used the old Rs 299 plan must now choose the Rs 349 plan, which costs about Rs 50 more each month.
The new plan gives a little more data and also includes unlimited 5G internet.
Airtel says it cannot raise prices on every plan because its rival Reliance Jio is cheaper.
Instead, it is quietly changing which plans it sells.
Airtel hopes to earn more money from each customer this way.
Some experts think other phone companies will do the same thing soon.
Airtel withdrew prepaid plans including Rs 299, Rs 579, Rs 619 and Rs 649; one brokerage report cites different packs (also Rs 319 and Rs 398).
The Rs 299 plan, estimated to cover around 80% of Airtel's prepaid users, is effectively replaced at entry level by the Rs 349 plan - a rise of about 16% (Rs 50 more a month).
Reports differ on details: the Rs 299 plan is described as offering 1.5 GB or 1 GB daily data, and the Rs 349 plan includes unlimited 5G data.
Brokerage JM Financial expects Reliance Jio and Vodafone Idea to follow with similar changes, though neither rival has altered its prepaid line-up so far.
In the June quarter, mobile ARPU rose to Rs 264, the highest in the industry, while profit after tax jumped 37.3% to Rs 8,167 crore.
- Who
- Bharti Airtel, its prepaid subscribers (especially Rs 299 plan users), and analysts at brokerage JM Financial
- What
- Withdrawal of several entry-level prepaid plans to push subscribers toward pricier packs such as the Rs 349 plan
- Where
- India
- When
- Reported on August 12; the changes took effect from Tuesday (reports do not specify the year)
- Why
- To lift average revenue per user (ARPU) without a headline tariff hike that would widen the price gap with Reliance Jio
Consumers and analysts
Airtel and industry executives
Price rise vs. pricing architecture
Consumers and analysts
Rs 299 subscribers now face a price increase of about 16% as they are pushed to the Rs 349 plan.
Airtel and industry executives
Airtel management, including Executive Vice Chairman Gopal Vittal, frames the change as repairing 'sensible price architecture,' not a headline tariff hike, since low-priced unlimited data caps ARPU.
Customer impact
Consumers and analysts
Some users may migrate to competing operators, and removing the popular plan disrupts entry-level customers.
Airtel and industry executives
Airtel argues the move reduces exposure to lower-paying subscribers, and affected users often buy top-ups or recharge again anyway.
Industry direction
Consumers and analysts
Experts say the withdrawal signals an inevitable industry shift toward higher tariffs as telcos sharpen their focus on ARPU.
Airtel and industry executives
Airtel says its tariffs are already at a premium to Reliance Jio, so broad hikes would widen the price gap; selective changes are safer.
Key facts
- Company
- Bharti Airtel
- Discontinued plans
- Rs 299, Rs 579, Rs 619, Rs 649 (one report also cites Rs 319 and Rs 398)
- Rs 299 plan offer
- 1.5 GB daily data for 28 days (one report says 1 GB)
- Replacement plan
- Rs 349 with wider data allowance and unlimited 5G data
- Price rise for affected users
- About 16% (Rs 50 more per month)
- Rs 299 plan share of prepaid users
- Estimated around 80%
- Mobile ARPU (June quarter)
- Rs 264, highest in the industry, up 5.6% year on year
- Profit after tax (June quarter)
- Rs 8,167 crore, up 37.3%
Quotes
Gopal Vittal
Executive Vice Chairman of Bharti Airtel
“Which means that for a very low level of pricing, you get unlimited data, and that means ARPU is capped.”
freepressjournal.in
Sources
Related news
Airtel phases out Rs 299 plan, signals industry-wide tariff shift
Airtel Withdraws ₹299 Prepaid Plan After Year-Long Price Hike
Airtel removes five prepaid plans, adds Rs 349 replacement
Airtel Raises Entry Price as Jio Revives Prime Protection
Airtel Quietly Drops Rs 579 and Rs 619 Prepaid Plans
Airtel sees room to raise low-cost unlimited data tariffs
JioPC Becomes Available Across India With Cloud Computing Plans
Delhi High Court Rejects Challenge to C-DOT Emergency Alert Deal
Jio Platforms IPO Clearance Could Revalue Reliance Industries Stake
Mukesh Ambani, Subhash Chandra Dispute Puts Wealth, Debt Under Spotlight
India Doubles 5G EMF Limit to Align With Global Standards
