Stealth tariff changes hint at more price rises ahead

Jio, Airtel and Vi are among the Indian mobile operators implementing marginal and stealth tariff increases. These adjustments are intended to help sustain quarterly revenue growth, which slowed in the September 2025 quarter.

Since 2019, telecom companies have raised tariffs on multiple occasions, resulting in improved margins and higher average revenue per user (ARPU). The most recent major hike took effect in July 2024.

As part of recent tariff revisions, Bharti Airtel has discontinued two of its 30-day validity data bundles to streamline its prepaid offerings. The withdrawn packs, priced at Rs 121 and Rs 181 and previously bundled with OTT benefits, provided high-speed data to supplement a user’s existing plan for 30 days.

Following the change, Airtel now offers four 30-day data packs, priced at Rs 100, Rs 161, Rs 195 and Rs 361. The removal of the Rs 121 pack has also reduced the number of app-exclusive recharge options.

Reliance Jio has likewise simplified its prepaid portfolio, with the Rs 209 pack now the only plan offering 1GB of daily data.

Airtel has also discontinued its entry-level one-day international roaming (IR) pack for postpaid users, previously priced at Rs 648. The new entry-level IR option is the Rs 2,999 pack with a 10-day validity.

Vodafone Idea has adjusted its Rs 509 prepaid plan to Rs 548 with additional features and raised the price of its Rs 1,999 annual plan, which includes voice, data and SMS benefits, to Rs 2,249.

While telcos have experienced growth, operating expenses have not fallen significantly. To reassure stakeholders, operators must both manage inflationary pressures and improve margins. Another round of tariff increases is expected in the coming year 2026, following the trend of previous hikes, which were spaced roughly two years apart.

The sector as a whole stands to benefit from these adjustments, not just individual players. Rising ARPU will even aid Vi, which has been losing subscribers and remains the only private telecom operator with an ARPU below Rs 200.

Telcos are increasingly opting for subtle, phased increases rather than a coordinated, sector-wide hike like that of 2024. The competitive environment has become more sensitive, with operators cautious of triggering customer churn amid slowing subscriber growth.

A large, collective hike could invite regulatory scrutiny and public criticism, particularly as disposable incomes remain constrained and 5G networks are still expanding. Incremental adjustments allow companies to gauge consumer tolerance, minimise backlash, and gradually raise ARPU without jeopardising market share.