The Arpu Conundrum

Telcos need to be prudent about tariff hikes so that they don't end up hurting rather than helping

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Reliance Jio and Bharti Airtel have both quietly raised tariffs, not through a headline hike but by tinkering their entry-level plans, removing the lowest packs and pushing customers to higher-priced recharges. Jio took the lead last month by discontinuing its ₹249 plan that offered 1 GB per day for 28 days. The new base plan now starts at ₹299, with 1.5 GB per day. Airtel followed within days, scrapping its own ₹249 pack that gave 1 GB per day for 24 days, repositioning its entry-level offerings closer to the ₹299-319 range. On the surface, this may look like a minor adjustment, but the implications are significant. For subscribers, this means paying 17-20% more per month for basic access. The option of low-cost, short-duration data packs is gone, leaving budget-conscious users with little choice but to spend more. For the operators, it is a clever way to lift average revenue per user (Arpu) without officially announcing a hike. This also prepares the ground for the next full-fledged tariff increase—the last hea