Bharti Airtel has discontinued its popular Rs 299 prepaid plan, effectively forcing users onto a Rs 349 option—a 16% price increase. The move aims to boost Average Revenue Per User (ARPU) following a strong Q1 FY27 result, where net profit rose 37.3% to Rs 8,167 crore. Investors are watching whether this price hike causes subscriber churn or prompts competitors to follow suit.
Bharti Airtel has discontinued four of its popular prepaid plans, including the widely used Rs 299 pack, effectively requiring subscribers to shift to higher-priced alternatives such as the Rs 349 plan. This adjustment represents a price increase of approximately 16% for base-level users. While entry-level packs like Rs 199 and Rs 219 remain unchanged, the removal of the Rs 299 plan signals a shift in the company’s focus toward maximizing revenue from its existing user base.
This move is part of the company's broader strategy to improve its Average Revenue Per User (ARPU), which reached Rs 264 in the first quarter of the current fiscal year (Q1 FY27), reflecting a 5.6% year-on-year growth. The telecom giant reported a robust financial performance for the quarter, with a 37.3% increase in net profit to Rs 8,167 crore and revenue of Rs 58,539 crore, up 18.3% compared to the same period last year. Shares of Bharti Airtel were trading around Rs 1,907 on August 12, 2026, showing minor intraday fluctuations as the market assessed the impact of these tariff changes.
Strategic Shift Toward Higher ARPU
Airtel’s management, led by Executive Vice Chairman Gopal Vittal, has previously emphasized the need for a more sustainable tariff structure. During recent investor calls, the leadership pointed out that offering unlimited data at very low price points restricts revenue growth and creates an unhealthy business model. By nudging users toward the Rs 349 plan, which includes unlimited 5G access, the company aims to migrate customers to higher-tier services that provide better returns on capital.
Market Risks and Monitorables
For investors, the key risk associated with such price hikes is consumer pushback. If the increase is perceived as too steep, subscribers may switch to other service providers, leading to higher churn rates. The success of this strategy also depends on the competitive landscape; if major competitors like Reliance Jio and Vodafone Idea do not implement similar hikes, Airtel could face pressure on its market share.
Regulatory scrutiny remains a potential factor as well, particularly if tariff adjustments across the industry appear synchronized. Moving forward, shareholders will closely track the next quarterly updates to see if this change successfully lifts the company's ARPU without significantly impacting the total subscriber count. Investors may also monitor whether other telecom players follow this trend, which would indicate a sector-wide move toward higher data pricing.