Airtel Pushes Customers to Costlier Plans, Jio Offers Price Protection Amid Tariff Hike Concerns

Srinagar, Aug 18, KNT: Mobile phone users are facing renewed pressure on their household budgets as telecom operators alter their recharge plans, with Airtel discontinuing several lower-priced prepaid options and analysts warning that the industry could see another 12-15 per cent tariff increase in the coming months.

Airtel has discontinued its popular ₹299 prepaid plan along with ₹579, ₹619 and ₹649 plans, leaving customers with fewer options at the lower end of its prepaid portfolio. The cheapest remaining plan offering 1.5GB daily data for 28 days is now reported to be ₹349, effectively forcing many users who relied on the ₹299 option to spend more for a comparable service.

The move has understandably raised concerns among consumers, particularly those who depend almost entirely on mobile data and voice services for communication, digital payments, education, work and access to online services.

What makes the development more concerning is that the telecom industry is already being viewed as a market where consumers have increasingly limited choices. Analysts at Centrum Institutional Research have projected another 12-15 per cent tariff increase over the next three to four months, citing a more favourable pricing environment following consolidation in the sector.

For consumers, the question is straightforward: how much more can ordinary households be expected to pay for what has effectively become an essential service?

Airtel’s latest move is particularly difficult to ignore because the company is not merely increasing the price of one recharge pack; it has removed several lower-priced options from its portfolio. Analysts have estimated that the restructuring could amount to an effective 3-4 per cent tariff increase.

The timing also comes when Airtel is reporting strong financial performance. Its June-quarter net profit rose 37.3 per cent year-on-year to ₹8,167 crore, while its average revenue per user increased 5.6 per cent to ₹264. The company has also benefited from customers moving towards higher-value plans.

Jio, meanwhile, has not announced a general tariff increase at present. Instead, it is bringing back its Jio Prime membership with a one-year price guarantee, while retaining its ₹299 plan. The move comes immediately after Airtel’s withdrawal of its comparable lower-priced option.

But the possibility of a wider increase remains. Analysts have repeatedly projected a 12-15 per cent rise in mobile tariffs, which would add further pressure on consumers already paying substantially more than they did before the major industry-wide increases of 2024.

Telecom companies may argue that higher revenues are necessary to support massive investments in 4G, 5G infrastructure and network expansion. However, consumers are entitled to ask whether every improvement in corporate revenue should ultimately be recovered from their pockets through higher prices and the removal of affordable recharge options.

Mobile connectivity is no longer a luxury. For millions of Indians, it is essential for banking, education, employment, government services and everyday communication. Repeatedly narrowing affordable options risks placing a disproportionate burden on low- and middle-income users.

The telecom regulator and policymakers therefore need to closely examine whether pricing changes are genuinely driven by costs and service improvements or whether reduced competition and market consolidation are giving operators greater freedom to push consumers towards increasingly expensive plans.

For now, a blanket Jio-Airtel tariff hike has not been announced. But the removal of cheaper Airtel plans and the expectation of another substantial industry-wide increase are enough to raise a serious question: how far can telecom companies keep raising the cost of an essential service before consumers are left with little choice but to pay? [KNT]

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