New Delhi, Aug 16: Bharti Airtel’s decision to withdraw select prepaid plans could boost its average revenue per user (ARPU) by Rs 4 to Rs 12 a month, according to estimates by leading brokerages.
Airtel recently discontinued four prepaid plans priced at Rs 299, Rs 579, Rs 619 and Rs 649, while retaining its entry-level Rs 199 and Rs 219 offerings.
The withdrawal of the popular Rs 299 plan means many subscribers may now have to opt for the Rs 349 pack, effectively raising their monthly cost by around 16 per cent.
Brokerages including Morgan Stanley, IIFL Capital, JM Financial and Citi described the move as targeted plan rationalisation rather than a broad-based tariff hike. They said the changes could encourage subscribers to shift to higher-value plans and support Airtel’s premiumisation strategy.
Morgan Stanley estimated an ARPU increase of around Rs 8-12 if 20-30 per cent of Airtel’s wireless subscribers currently on plans below Rs 349 upgrade to the Rs 349 offering.
Citi projected a monthly ARPU benefit of around Rs 4, while JM Financial estimated an increase of Rs 5-6, assuming a portion of subscribers move to plans costing about Rs 50 more.
IIFL Capital estimated an annualised ARPU uplift of around Rs 12, although it expects the FY27 impact to be limited to about Rs 4 as it has already factored in a broader tariff hike later in 2026.
The brokerages said the latest changes indicate Airtel’s focus on monetising its subscriber base by encouraging customers to move towards higher-data and higher-value plans.