Reliance Jio and Airtel have discontinued their cheapest prepaid plans, and its direct impact is going to fall on the pockets of crores of users! Jio has quietly discontinued its Rs 209 (22 days, 1GB/day) and Rs 249 (28 days, 1GB/day) plans, and Airtel has also discontinued its Rs 249 plan. Now both the companies are pushing users towards more expensive plans with 1.5GB/day. Let’s see what does this mean, and what difference will it make to your pocket and data!
Plans are gone, what’s new now?
Jio’s Rs 209 and Rs 249 plans are no longer available for online recharge, they can rarely be found in offline stores or MyJio app. Airtel has also completely discontinued its 1GB/day plan. Now the entry-level plan of Jio is Rs 299 (1.5GB/day, 28 days) and that of Airtel is Rs 319 (1.5GB/day, 28 days). Meaning, now there is no cheap plan with less data – either take more data or pay more money! These new plans are 17-20% more expensive, so monthly expenses are going to increase, especially for students and low-income users.
Why are telecom companies doing this?
According to analysts, this step of Jio and Airtel is part of a bigger strategy. Both companies want to increase their Average Revenue Per User (ARPU), because they have made huge investments in 5G rollout and spectrum purchase. According to Crisil Ratings, the operating profit of telecom companies can increase by 12-14% in this fiscal year, because users are using more data, and now with the removal of cheap plans, people will take expensive plans. This is like a tariff hike, without shouting in the headline! Experts are saying that an even bigger tariff hike could come in 2026, maybe up to 15-20%.
20-25% of Jio users and 18-20% of Airtel users were on 1GB/day plans. They will now have to switch to Rs 299-319 plans, which could increase Jio’s ARPU by Rs 11-13 and Airtel’s by Rs 10-11 monthly. This is a big profit boost for these companies – Jio’s FY27 EBITDA could gain Rs 1900-2200 crore and Airtel’s wireless EBITDA could gain Rs 1800-2000 crore. But all this is good for companies, not for users.
What is the effect on users?
- More expense: If you were using a plan of Rs. 249, now you will have to buy a plan of Rs. 299 or Rs. 319. Meaning, Rs. 50-70 extra expense for a 28-day plan. This can increase to Rs. 600-800 in a year!
- More data, but is it needed?: The new plans offer 1.5GB/day, but if you want only 1GB/day, then you will have to pay for the extra data as well. This is a bit like a forced upgrade.
- Shock to Low-Income Users: This is a big burden for students, small shopkeepers, or daily wage workers who depend on cheap plans. Some people may move to cheaper options like BSNL, which is still not increasing tariffs.
What changes will come in the market?
This move by Jio and Airtel may change the competition in the market a bit. Vodafone Idea (Vi) may also discontinue its 1GB/day plan soon as it also wants to increase ARPU. Analysts are saying that this is a preparation for 5G monetization, as users are now using more data (37GB/month on Jio, 26.9GB/month on Airtel). This big data is a big earning opportunity for telcos in the future, but for now it is just increasing expenses for users.