Archive · 21 Aug 2026
Airtel Raises Entry Price as Jio Revives Prime Protection
Airtel stopped selling some cheaper phone plans, including its Rs 299 unlimited plan.
Its cheapest unlimited daily-data plan now costs Rs 349.
Jio kept its similar plan at Rs 299.
Jio also brought back a membership that costs Rs 300.
Members can be protected from a future price increase until September 5, 2027.
This may encourage Airtel customers to move to Jio.
Vodafone Idea is watching what happens before changing its prices.
Analysts think phone companies may raise tariffs by about 15% in the December quarter of FY27.
Airtel withdrew its Rs 299, Rs 579, Rs 619 and Rs 649 prepaid plans on August 12.
Airtel’s cheapest unlimited daily-data plan now costs Rs 349, potentially increasing blended ARPU by about 2.5%.
Jio relaunched its Rs 300 Prime membership on August 17, offering tariff protection until September 5, 2027.
Jio retained its Rs 299 entry-level unlimited plan, while Vodafone Idea is waiting to assess Airtel-related customer churn.
Nomura expects an industry-wide tariff increase of about 15% in the December quarter of FY27.
- Who
- Bharti Airtel, Reliance Jio, Vodafone Idea, and brokerage analysts at Nomura and Motilal Oswal.
- What
- Airtel removed several prepaid plans, Jio relaunched its Prime membership, and analysts assessed the possibility of telecom tariff increases.
- When
- Airtel withdrew the plans on August 12; Jio relaunched Prime on August 17; an industry tariff hike is expected in the December quarter of FY27.
- Where
- India’s telecom market.
- Why
- Airtel’s move raises its entry-level pricing, while Jio’s Prime programme is intended to retain customers, attract price-sensitive Airtel users, and prepare for a possible tariff increase.
Higher Pricing and Tariff Pressure
Value Retention and Price Protection
Entry-level pricing
Higher Pricing and Tariff Pressure
Airtel has raised the floor for unlimited daily-data plans from Rs 299 to Rs 349, which could increase revenue per customer if most users remain with the company.
Value Retention and Price Protection
Jio has kept its entry-level unlimited plan at Rs 299, preserving its value positioning against Airtel.
Customer movement
Higher Pricing and Tariff Pressure
Motilal Oswal says many users may already have moved to Rs 349 unlimited 5G plans, potentially limiting churn from Airtel’s plan withdrawals.
Value Retention and Price Protection
Nomura says price-sensitive Airtel users could move to Jio, with even 10% of affected customers representing an estimated 6.9 million subscribers.
Timing of tariff increases
Higher Pricing and Tariff Pressure
Nomura expects an industry-wide increase of about 15% in the December quarter of FY27, while Motilal Oswal’s calculations indicate a Jio increase before March 2027 would make Prime worthwhile for members.
Value Retention and Price Protection
Jio’s Prime price protection offers customers certainty until September 5, 2027, and Vodafone Idea is delaying any pricing changes while it observes Airtel-related churn.
- Airtel plans withdrawn
- Rs 299, Rs 579, Rs 619 and Rs 649 prepaid plans were withdrawn on August 12.
- Airtel’s new entry price
- The cheapest unlimited daily-data plan now starts at Rs 349.
- Airtel ARPU impact
- Nomura estimates blended ARPU could rise by about 2.5% from a Q1FY27 base of Rs 264 per month.
- Jio Prime fee
- The relaunched membership costs Rs 300 as a one-time fee.
- Jio price protection
- Prime members receive protection from tariff increases until September 5, 2027.
- Potential industry hike
- Nomura forecasts a tariff increase of around 15% in the December quarter of FY27.
- Potential Jio subscriber gain
- Nomura estimates Jio could gain about 6.9 million subscribers if 10% of affected Airtel users switch.