Reliance Jio and Bharti Airtel, India's top two telecom service providers by subscribers, have withdrawn their entry-level 1 gigabyte (GB)-per-day plans for new customers, effectively raising minimum tariffs.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