- Bharti Airtel withdrew four prepaid plans priced between Rs 299 and Rs 649
- Subscribers on Rs 299 plan may need to shift to Rs 349 plan, a 16% price rise
- Brokerages view this as plan rationalisation, not a broad tariff hike
Bharti Airtel's move to withdraw select prepaid plans could raise its average revenue per user (ARPU) by Rs 4-12 a month, according to brokerage estimates, as the telecom operator seeks to steer subscribers towards higher-value plans.
The company recently withdrew four prepaid packs priced at Rs 299, Rs 579, Rs 619 and Rs 649, while keeping its entry-level Rs 199 and Rs 219 plans unchanged.
The move means users of the popular Rs 299 pack may now have to opt for the Rs 349 plan, implying an effective price increase of about 16%.
Brokerages, however, see the move as targeted plan rationalisation rather than a broad-based tariff hike.
They believe the changes could accelerate Airtel's premiumisation strategy by encouraging subscribers to migrate to plans offering higher data benefits.
Morgan Stanley estimates an ARPU increase of Rs 8-12, assuming 20-30% of Airtel's wireless subscribers currently on plans below Rs 349 upgrade to the Rs 349 pack.
Citi has estimated a monthly ARPU benefit of around Rs 4, while JM Financial sees a potential increase of Rs 5-6, assuming 10% of subscribers shift to plans costing about Rs 50 more.
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IIFL Capital has projected an annualised ARPU uplift of around Rs 12.
However, it expects the FY27 benefit to be limited to about Rs 4, as its estimates already factor in a broader tariff hike later in 2026.
The brokerage said the latest changes could represent an early move towards the next round of tariff increases, rather than an additional hike over and above its existing assumptions.
(With PTI inputs.)
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