Key Takeaways
- Jio and Airtel have eliminated entry-level 1GB/day plans, pushing users to costlier options
- Analysts forecast 10-15% tariff increases between December 2025 and June 2026
- Telecom companies are focusing on ARPU growth through strategic pricing changes
India’s telecom sector is preparing for significant tariff revisions, with Reliance Jio, Bharti Airtel, and Vodafone Idea likely to increase mobile plan prices by up to 10% in the coming months. This potential hike would mark the first direct price increase since 2024 as operators strategically boost average revenue per user (ARPU) without formal announcements.
Current Market Shifts
Recent months have seen Jio and Airtel quietly phase out their entry-level 1GB-per-day prepaid plans, steering customers toward higher-value packages. The new baseline for prepaid data users now begins at 1.5GB per day with plans starting around ₹299 – nearly 17% higher than the previous ₹249 tier. Vodafone Idea continues to offer a 1GB-per-day plan at ₹299.
Both Airtel and Vi have emphasized the necessity of tariff adjustments, citing the capital-intensive nature of telecom operations and ongoing 5G infrastructure investments. Rather than immediate price hikes, telecom companies are adopting a more subtle approach by reducing low-cost options to gradually increase overall ARPU.
Industry Strategy and Projections
Reliance Jio reported an ARPU of ₹211.4 in Q2 FY26, up from ₹208.8 in the previous quarter. While the company states it has “no immediate plans” for formal tariff increases, executives acknowledge “nudging consumers to consume more and happily pay more” as part of a sustainable growth strategy.
Jio has encouraged users to transition toward monthly or quarterly recharges, creating more frequent revenue cycles with improved cash flow visibility. Airtel has implemented a similar approach, with its 28-day 1.5GB-per-day plan becoming the new entry point for most prepaid users.
Brokerage firm Axis Capital and analyst Gaurav Malhotra predict tariff hikes between December 2025 and June 2026. According to JP Morgan analysis cited by Communications Today, Jio might implement increases up to 15% as a strategic move ahead of its IPO, with other telecom companies likely to follow based on historical patterns.
The industry continues to balance user growth with revenue sustainability as 5G investments accelerate.
