Following in the footsteps of Reliance Jio, Bharti Airtel, one of India’s leading telecom operators, has announced an increase in tariffs for its prepaid and postpaid plans. The revised pricing structure will see costs rise by up to Rs 600. The new prices are set to take effect starting July 3, 2024.
Prepaid Plans: Notable price hikes
Airtel’s revised prepaid plans show significant increases across various packages. The unlimited voice plans, which offer data along with unlimited calling and SMS benefits, are among those affected. The basic plan, previously priced at Rs 179 for 28 days with 2GB of data, will now cost Rs 199. The 84-day plan providing 6GB of data has increased from Rs 455 to Rs 509, while the annual plan offering 24GB of data has risen from Rs 1799 to Rs 1999.
Daily data plans have also seen price hikes. The 1GB/day plan for 28 days has increased from Rs 265 to Rs 299. Similarly, the 1.5GB/day plan now costs Rs 349, up from Rs 299, and the 2.5GB/day plan is priced at Rs 409, compared to the previous Rs 359. The highest daily data plan, offering 3GB/day for 28 days, has risen from Rs 399 to Rs 449.
For longer durations, the 56-day plan with 1.5GB/day now costs Rs 579, up from Rs 479, and the 2GB/day plan has increased from Rs 549 to Rs 649. The 84-day plan with 1.5GB/day has seen its price rise from Rs 719 to Rs 859, while the 2GB/day plan now costs Rs 979, up from Rs 839. The annual plan offering 2GB/day has jumped significantly from Rs 2999 to Rs 3599.
Data add-ons have seen moderate increases. The 1GB add-on for one day has gone from Rs 19 to Rs 22, the 2GB add-on from Rs 29 to Rs 33, and the 4GB add-on from Rs 65 to Rs 77.
Postpaid Plans: Increased tariffs
Postpaid users are also facing higher charges. The base plan, offering 40GB of data with rollover and additional benefits like unlimited calling and 100 SMS/day, has increased from Rs 399 to Rs 449. The next tier, providing 75GB of data along with similar benefits and additional subscriptions to streaming services, now costs Rs 549, up from Rs 499.
Family plans have seen notable increases as well. The plan for two connections, previously priced at Rs 599, now costs Rs 699, offering 105GB of data with rollover, unlimited calling, and 100 SMS/day. The highest family plan, supporting four connections with 190GB of data, has increased from Rs 999 to Rs 1199.
Industry trends and customer impact
Bharti Airtel has emphasised that the mobile Average Revenue per User (ARPU) needs to exceed Rs 300 to sustain a financially healthy business model for Indian telcos. This ARPU level is crucial for substantial investments in network technology and spectrum, offering a modest return on capital. Airtel has implemented a modest price increase of less than 70 paise per day on entry-level plans to minimise the impact on budget-conscious consumers, the telco reiterated in a prepared statement sent to media.
Airtel’s tariff hikes align with a broader trend in the telecom industry where service providers are adjusting prices to sustain and improve service quality amidst growing data consumption and network demands. With Jio increasing prices, Airtel was bound to follow suit. Airtel in fact has been vocal about the need for raising tariffs for sometime now. We can expect a similar announcement from Vodafone Idea (Vi) anytime now.
