In a step towards a tariff hike, Bharti Airtel has discontinued several prepaid plans, with customers now having to opt for higher-priced plans.
The company has removed the Rs299 plan, with the Rs349 pack now being the nearest available option, effectively increasing the price by around 16% for customers who were using the Rs299 plan.
Along with this, the company has also discontinued its Rs579, Rs619 and Rs649 prepaid plans across India, with the changes coming into effect from August 12.
Airtel's latest tariff changes come after the company reported strong growth in average revenue per user (ARPU) in the June quarter of FY 2026-27. Its mobile ARPU rose to Rs264 in the first quarter of FY27 from Rs250 in the same quarter a year earlier.
The telco has maintained that tariffs need to be restructured, while the company is aiming for an ARPU of Rs. 300. This means Airtel wants to increase its average earnings per customer to Rs. 300 from the current Rs. 264.
Meanwhile, according to a source in Airtel, the company has not increased the price of its tariffs but has only discontinued a few plans that were not very popular among customers. However, when asked about the reason for removing the plans, the source said the company is aiming for an ARPU of Rs. 300. The company also said its entry-level plan of Rs. 199 is still available.
Analysts have been expecting another round of tariff hikes from major telecom operators, including Airtel, Reliance Jio and Vodafone Idea, although the timing and extent of such increases may vary.
The development could also put pressure on other telecom operators to review their prepaid tariffs, although it remains to be seen whether Jio and Vodafone Idea follow a similar strategy.
Airtel was also in the news over the net neutrality issue following the launch of its "Priority Postpaid" service. The company later updated the branding on its website, replacing "Priority Postpaid" with "Fast Lane."Financially, Bharti Airtel reported a strong performance for the first quarter of FY27, with a 37.3% increase in net profit to Rs 8,167 crore, compared with Rs 5,948 crore in the corresponding quarter of the previous fiscal year.
Revenue from operations during the quarter rose 18.3% to Rs 58,539 crore from Rs 49,462.6 crore in the June quarter of the previous year.