Reliance Jio, Bharti Airtel hang up on 1 GB starter packs for new users

Exit clears path for 10-15% tariff hikes this year

Reliance Jio and Bharti Airtel, India’s top two telecom service providers by subscribers, have withdrawn their entry-level 1 gigabyte (GB)-per-day plans for new customers, effectively raising minimum tariffs.

 

Industry executives and analysts said the recalibration could set the stage for fresh tariff hikes, with some expecting increases of up to 15 per cent this year.

 

“The demand for 1 GB plans has been falling ever since 5G services were introduced, as consumers end up using more data and upgrading to larger plans,” a senior industry executive said.

 

On Tuesday, Jio removed its ₹249 plan (1 GB per day, 28-day validity) from its website, MyJio app, and third-party recharge platforms. The plan remains available at Jio Stores but not for new subscribers, raising the entry-level tariff for them to ₹299 per month with 1.5 GB per day.  A senior executive added that Airtel would follow suit. Its entry-level plan will now start at ₹279 a month for 1.5 GB per day, compared with ₹249 earlier for 1 GB, offering lower data value at a higher price.  Industry watchers said Vodafone Idea (Vi) is also likely to follow, given its need to lift average revenue per user (Arpu) and improve financials. The debt-laden carrier has been under pressure to strengthen performance.

   

Queries to Jio, Airtel, and Vi remained unanswered at the time of going to press.

 

“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. This nudges subscribers towards higher Arpus while keeping data-rich packs attractive,” said Vinish Bawa, head of telecommunications (telecom) at PwC India.

 

“Recalibrating tariff plans is one way to lift Arpus, but the bigger impact will come when headline tariffs rise. Higher gigabyte plans at higher tariffs will add directly to telecom companies’ (telcos’) bottom lines,” said Ankit Jain, analyst at ratings agency Icra.

 

The restructuring of tariff slabs is expected to pave the way for the next round of hikes, with increases of 10–15 per cent in headline tariffs likely this year, without changes to validity periods or overall data volumes, industry watchers said.

 

The last major hikes in 2024 saw all three carriers raise tariffs between 10 per cent and 21 per cent, which lifted Arpus but also triggered subscriber churn, with some customers moving to Bharat Sanchar Nigam.

 

Vi’s outgoing Chief Executive Officer Akshaya Moondra said on Monday the company will withdraw its ₹299 plan (1.5 GB per day, 5G data) in Mumbai and plans to remove it in other markets as well. Analysts said this indicates a likely shift to 2 GB-per-day plans at higher tariffs.

 

“Tariffs are expected to go up within this financial year. The key question is how the hikes are rolled out,” said Icra’s Jain.

 

“With another round of tariff revisions expected by end-2025, following the mid-2024 hikes, the industry is clearly aligning to push Arpus towards sustainable levels. While this strengthens revenue visibility for telcos, affordability and customer value perception will remain key factors in balancing growth with inclusivity in India’s highly price-sensitive market,” PwC’s Bawa said. 

Telcos have long argued that current tariff structures need repair, with heavy data and voice allowances priced among the cheapest globally. Airtel Vice-Chairman Gopal Vittal has repeatedly said in investor calls that the current tariff levels and structures are unsustainable in the long run. 

  1 GB pack runs out of signal 

Telcos reset entry-level tariffs 

New entry plan: ₹299 for 1.5 GB per day 

Telecom sector watchers say headline tariff hikes imminent 

Last hikes of 10-21% came in October-December 2024  Telcos say current pricing model unsustainable