Jio, Airtel Quizzed Over Ending Entry-Level Plans: What Are Telcos Saying

The Telecom Regulatory Authority of India (Trai) has reportedly questioned Reliance Jio and Bharti Airtel over the removal of their entry-level mobile data and calling packs. Both operators discontinued their 1GB-per-day plans in August, amid expectations of a fresh tariff hike later this year.

According to Mint, Trai’s move followed a request from the Department of Telecommunications (DoT) for a report on the issue. Sources told the paper that Trai has the mandate to step in when needed to protect consumer interests. While operators have the freedom to design tariff plans based on market demand, this remains subject to regulatory oversight.

What the Telecom Companies Said

In its submission to Trai, Jio reportedly said it had restructured some of its prepaid packs after assessing market conditions, with certain plans now available only through Jio stores. Airtel explained that such changes are made after reviewing consumer behaviour. It added that earlier, when 5G was not available, daily packs with 1–1.5 GB data were popular. However, with rising 5G data consumption, demand has shifted towards larger packs, making smaller plans less relevant.

In August, Jio and Airtel withdrew their entry-level ₹249 prepaid packs that offered 1GB per day. Jio’s plan came with a 28-day validity, while Airtel’s lasted 24 days. Jio first removed the plan from its website, followed by Airtel. Airtel’s new entry-level plan now costs ₹299 for 28 days with 1GB daily data, while Jio offers 1.5GB per day for the same price and duration.

Analysts say the move is aimed at boosting average revenue per user (ARPU). The revision in entry-level packs by the two market leaders also signals that another round of tariff hikes could come by late 2025. JM Financial estimated that around 20–25% of Jio’s subscribers were on the 1GB/day plan, and its withdrawal could lift Jio’s ARPU by ₹11–13 per month, or 6–7%. For Airtel, with an estimated 18–20% of users on the same plan, ARPU could rise by ₹10–11 per month, or around 4–4.5%.

Outlook Business has previously reported that telecom firms are raising prices to recover massive capital expenditure on 5G rollout. India’s data tariffs remain among the lowest in the world, and analysts expect operators to raise prices by about 15% in the near term, with further hikes implemented gradually.

In July last year, all three operators, Jio, Airtel, and Vodafone Idea, raised tariffs by about 15–20%.