Premium shift: Airtel, Jio shelve base plans

Move aimed at nudging customers to higher data packs, boosting Arpu

- Jatin Grover

After Reliance Jio pulled its ₹249 entry-level prepaid plan from online recharge platforms, Bharti Airtel followed suit on Tuesday and discontinued its own basic plan.

According to company insiders and analysts, the move is largely driven by changing user habits towards higher data packs. But it's also a push by telecom operators to boost average revenue per user, or Arpu, a key telecom industry metric.

The changes in the entry-level plans by the market leaders indicate the possibility of another increase in headline tariffs shortly, analysts said.

For Jio users, the entry-level recharge plan continues to be available through shops and offline partners, but for Airtel users, the plan is being completely shelved, according to people in the know.