The move, effective from Wednesday, raises the minimum starting point for mobile data usage to 1.5 GB per day plans, which come at a higher cost for consumers.
Reliance Jio initiated the shift earlier by discontinuing its 1 GB per day plan, replacing it with a 1.5 GB daily plan priced at Rs 299, nearly 17% higher. Bharti Airtel has now matched the move, with its new 1.5 GB per day plan priced at Rs 319.
Vodafone Idea (Vi), India’s third-largest telecom operator, is also expected to follow suit soon, according to industry executives and analysts.
Analysts noted that the move is aimed at improving average revenue per user (ARPU) for telecom companies. In the absence of a broad-based tariff hike, which is expected next year, operators are adopting this strategy to lift revenues.
Brokerage firm JM Financial, according to a previous ET report, said in a note that both Bharti Airtel and Vodafone Idea’s managements have been actively pushing for industry-wide tariff repair to strengthen return on capital employed, given the capex-intensive nature of the telecom sector. The report highlighted that 20–25% of Jio’s subscribers are likely on the 1 GB per day plan, and removing it could increase Jio’s ARPU by Rs 11–13 per month, translating to a 6–7% rise and lifting Reliance Industries’ consolidated FY26–27 EBITDA by Rs 1,900–2,200 crore.Similarly, about 18–20% of Bharti Airtel’s subscriber base is estimated to be on the 1 GB daily plan. The discontinuation could raise Airtel’s ARPU by Rs 10–11 per month, or 4–4.5%, and increase its India wireless FY27 EBITDA by Rs 18 billion–20 billion, equivalent to a 2% boost. JM Financial also projected that this could lift Bharti Airtel’s overall valuation by Rs 43–47 per share, or around 2%.Currently, Vodafone Idea continues to offer its Rs 299 plan with 1 GB daily data benefits, though industry analysts expect it to align with Jio and Airtel soon.With these changes, consumers starting mobile data usage will now need to opt for higher-priced 1.5 GB daily plans, which analysts believe will improve operator revenues while reshaping pricing structures in the telecom market.
Bharti Airtel shares closed 0.9% higher at Rs 1,909.60 on the BSE on Tuesday.
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