Telecom service provider Bharti Airtel has discontinued its entry segment prepaid plan priced at Rs. 249. The company has followed suit from its rival Jio who too discontinued its entry-level plan priced at Rs. 250. Airtel quietly discontinued the plan for users, forcing them to now opt for an expensive prepaid plan priced at Rs. 299.
The plan discontinued by Airtel, priced at Rs. 249, provided 1GB of data daily for 28 days, it also offered unlimited voice-calls and 100 SMS per day. Importantly, it offered benefits like free HelloTunes, Perplexity Pro AI, and Xstream Play to subscribers. Jio also removed its Rs 249 plan, which offered 1GB of daily data for 28 days. Jio no longer has any plan with a 1GB daily data limit. Its cheapest 28-day plan now starts at Rs 299, offering 1.5GB of daily data.
Why was the plan removed?
During the earnings call meeting held recently, Gopal Vittal, the Vice-Chairman and Managing Director of Bharti Airtel, shared his thoughts on the pricing of data services in India. He pointed out that data prices in India are quite low compared to other countries, even those with lower average incomes.
Vittal explained that the way prices are set in India is unbalanced. He noted that at the basic service level, people already receive a lot of data, calls, and messaging for a low price. Because of this, many users see no reason to upgrade to more expensive plans. He added that it’s unfortunate that wealthier individuals are often paying less for services, while those who are less fortunate do not need to be charged more.
While the move will boost the average revenue per user (ARPU) for Airtel and Jio, a pricier prepaid recharge plan will pinch the common man. The decision taken by these two telecom operators could be replicated by VI who will also try to gain headwinds for people switching over from other operators.
Other Similar Plans
Users of the Rs. 249 plan must now switch to the Rs 299 plan, which provides the same benefits—unlimited voice calling, 100 SMS per day, and 1GB of daily data—but with an extra 4 days of validity. For an additional Rs 50, users get an extra 4 days of validity and 4GB of data. This plan also includes the same additional benefits.
