Bharti Airtel Scraps Select Plans To Boost ARPU Growth

Bharti Airtel has eliminated four specific prepaid mobile tiers to steer consumers toward more expensive alternatives. The telecommunications provider axed the Rs 299, Rs 579, Rs 619 and Rs 649 recharge options.

The base Rs 199 and Rs 219 recharge options remain unaltered.

Users of the widely adopted Rs 299 tier will now need to select the Rs 349 package, resulting in a 16 per cent cost jump for those individuals.

Financial analysts project this targeted portfolio adjustment will elevate the monthly average revenue per user (ARPU) by Rs 4-12.

The tactic aims to enhance overall earnings by prompting organic transitions to premium services, rather than acting as a sweeping formal tariff increase.

Estimating ARPU Growth

Morgan Stanley estimated an overall ARPU boost of Rs 8-12 for the firm. This outcome would occur if 20-30 per cent of mobile users currently paying less than Rs 349 transition to the Rs 349 level.

The financial institution stated this action is a preliminary move to overhaul the wider pricing structure and capitalise on growing user demand for larger data allowances.

It added that observing if rival networks implement similar changes will be noteworthy.

Citi estimated a monthly ARPU gain of approximately Rs 4, a figure derived from the assumed user base of the retired Rs 299 package.

The firm stated the adjustment aligns with the telecom operator's goal of expanding ARPU via premiumisation.

Meanwhile, JM Financial estimated a possible ARPU expansion of Rs 5-6, or roughly 2 per cent.

This model presumes 10 per cent of existing users will migrate to packages priced about Rs 50 higher, functioning as a strategy to migrate users to higher-data tiers instead of a universal price hike.

Timing of Tariff Hikes

IIFL Capital estimated an annualised ARPU improvement of Rs 12 due to the discontinued packages.

However, the firm anticipates the realised advantage for the 2027 financial year will be capped at Rs 4, as its baseline projections already incorporated wider industry price increases anticipated in December 2026.

"We believe this is an advancement of the next round of tariff hikes (assumed in Dec'26) on select plans.

For now, we are not assuming that this tariff tweak is over and above the Dec'26 expected tariff hike.

The incremental benefit from the current move will thus be limited to four months of FY27, implying a potential FY27 ARPU uptick of Rs 4," IIFL Capital stated in a research note.