Airtel prepaid pack withdrawal may lift monthly ARPU by Rs 4-12: Brokerages

Bharti Airtel has withdrawn four prepaid plans, potentially moving users from the Rs 299 pack to Rs 349. Brokerages estimate a Rs 4-12 monthly ARPU uplift, framing the move as targeted premiumisation ahead of a potential broader tariff hike later in 2026.

— Source published Sun, 16 Aug, 2026, 17:52 IST · First seen Sun, 16 Aug, 2026, 18:34 IST · Source NDTV Profit

What happened

Bharti Airtel withdrew four prepaid packs, pushing some users toward its Rs 349 plan. Brokerages estimate monthly ARPU gains of Rs 4-12, viewing the move as

Key facts

  • Withdrawn prepaid packs: Rs 299, Rs 579, Rs 619 and Rs 649
  • Entry-level plans retained: Rs 199 and Rs 219
  • Likely migration plan: Rs 349
  • Effective increase from Rs 299 plan: about 16%
  • Estimated monthly ARPU uplift: Rs 4-12
  • Morgan Stanley estimate: Rs 8-12 ARPU uplift
  • Citi estimate: around Rs 4 monthly ARPU benefit
  • JM Financial estimate: Rs 5-6
  • IIFL annualised ARPU uplift estimate: around Rs 12
  • IIFL FY27 benefit estimate: about Rs 4

Why this matters

By pruning lower-priced prepaid options, Airtel is improving monetisation and competitive positioning ahead of potential industry-wide pricing action.

What to watch

  • Airtel's next reported prepaid ARPU, subscriber additions, churn and mobile service-revenue growth.
  • Recharge migration data from the Rs 299 pack toward Rs 349 and the share of users moving to lower-frequency recharges.
  • Jio and Vodafone Idea changes to entry-level prepaid plans, validity benefits or promotional discounts.
  • Mobile number portability trends, especially Airtel port-outs in lower-income and rural circles.
  • Further Airtel withdrawals of prepaid SKUs or changes in minimum recharge thresholds.
  • Management commentary on timing and conditions for a broader tariff hike.
  • Regulatory or consumer-response scrutiny around affordability of minimum prepaid plans.
  • Rationalise additional low-ARPU prepaid packs while preserving clearly differentiated data and validity tiers.
  • Use targeted recharge offers, handset bundles and loyalty incentives to retain users migrating from discontinued plans.
  • Emphasise 5G access, network quality and content/service bundles to justify higher effective prepaid pricing.
  • Monitor port-out activity by circle and selectively deploy retention offers in price-sensitive markets.
  • Prepare for a wider tariff-action window in late 2026 if Jio pricing remains disciplined.