Airtel’s Prepaid Plan Changes to Boost ARPU by ₹4-12

Bharti Airtel has strategically adjusted its prepaid plan offerings, discontinuing four specific options: ₹299, ₹579, ₹619, and ₹649. This move is projected to elevate the company’s average revenue per user (ARPU) by an estimated ₹4 to ₹12, according to analyses from several prominent brokerages.

The withdrawal of these plans, notably the popular ₹299 option, signals a targeted rationalisation rather than a broad tariff hike. This strategic shift aims squarely at driving premiumisation and monetisation within its subscriber base. Customers previously on the ₹299 plan will now likely opt for the ₹349 pack, representing a roughly 16 percent price increase for them.

Brokerage Projections on ARPU Growth

• Morgan Stanley anticipates a gross ARPU increase of ₹8-12 at the company level. This projection assumes 20-30 percent of wireless subscribers on plans below ₹349 upgrade to the ₹349 offering.
• Citi forecasts an ARPU benefit of approximately ₹4 per month, aligning with Airtel’s broader premiumisation strategy.
• JM Financial expects a ₹5-6 (approximately 2 percent) ARPU increase. This is based on 10 percent of subscribers upgrading to plans roughly ₹50 more expensive, pushing towards higher-data and higher-ARPU options.
• IIFL Capital projects an annualised ARPU uplift of about ₹12, though the FY27 benefit might be closer to ₹4. This estimate already incorporates broader tariff hikes expected later in 2026, viewing current changes as an acceleration of those future adjustments.

Airtel’s calculated plan alterations underscore a clear strategy to enhance subscriber value through targeted upgrades. This approach prioritizes boosting ARPU through premium offerings over a blanket tariff increase, shaping its financial trajectory. The market anticipates these changes will contribute to a more robust per-user revenue stream in the coming fiscal periods.