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The Indian telecom market is witnessing a significant shift as Reliance Jio has discontinued its entry-level 28-day prepaid plan. This move has put the spotlight on Airtel and Vodafone Idea (Vi), prompting speculation about whether they will follow suit. Jio's decision to scrap its Rs 249 plan, which offered 1 GB of data per day for 28 days, came into effect on August 18th. As a result, Jio subscribers now have to opt for the next available plan, priced at Rs 299, which provides 1.5 GB of data per day for the same duration. Jio's website now exclusively features plans offering 1.5 GB of data or more per day, effectively eliminating lower-data options for its customers. This strategy is likely to drive users towards higher-priced packs. For instance, Jio's 2 GB per day plan for 28 days is available at Rs 349. The timing of Jio's announcement coincides with Airtel's vice chairman, Gopal Vittal, advocating for further "tariff repair" to ensure a sustainable return on capital employed for telecom operators. History suggests that when one telecom company makes a significant plan change, its competitors often follow suit with their own adjustments to remain competitive. In comparison to Jio's new entry-level pricing, Vodafone Idea's 28-day pack offering 1 GB of data per day is currently priced at Rs 299. Vi's 1.5 GB per day plan is available for Rs 349, while its 2 GB per day plan costs Rs 408. Airtel's entry-level plan, which provides 1 GB of data per day for 28 days, is also priced at Rs 299. Its 1.5 GB per day plan for the same duration is priced at Rs 349. BSNL, a state-owned telecom operator, offers comparatively lower-priced packs. For example, its 30-day plan with 1.5 GB of data per day is available for Rs 141, and a 30-day plan with 2.2 GB of data per day is offered at Rs 148. These prices are specific to the Western Uttar Pradesh region. In recent months, Airtel has introduced a range of prepaid and postpaid offers to attract customers, intensifying the competition with Mukesh Ambani's Jio in the challenging telecom market. The battle between Mittal's Airtel and Ambani's Jio has further intensified in 2025, with both companies capturing a significant share of the market at the expense of the debt-ridden Vodafone Idea. Jio and Airtel now dominate India's wireless market, accounting for the majority of subscribers. Data from the Telecom Regulatory Authority of India (TRAI) indicates that Jio added 1.9 million net wireless subscribers in June 2025, maintaining its leading position in the Indian telecom sector. Airtel gained 763,482 subscribers, while Vodafone Idea lost 217,816 users. Bharti Airtel's revenue market share (RMS) reached a record high of approximately 40% in fiscal year 2025. In FY25, Airtel's revenue increased by 17.9% year-on-year to Rs 1.25 lakh crore, with an EBITDA of Rs 57,909 crore, contributing to the company's lifetime-high revenue market share. According to Airtel's annual report released in July, the company's strong revenue growth was driven by an "improved portfolio mix, continued premiumisation, and tariff repair across our mobile pricing plans." The second-largest telecom operator added 24 million net 4G/5G customers in FY25, while its ARPU (average revenue per user), a key performance metric, increased by Rs 36 to Rs 245 during the same period. The day after Jio announced the discontinuation of its basic plan, shares of Reliance Industries experienced a significant increase (over 2.5% around midday). This market reaction could reflect investor expectations that this change will increase Jio's profitability.
The strategic move by Reliance Jio to eliminate its entry-level 28-day plan is not just a simple pricing adjustment; it signifies a larger trend within the Indian telecom industry. The elimination of the Rs 249 plan, which offered 1 GB of data per day, forces consumers to upgrade to the Rs 299 plan, providing 1.5 GB of data per day. This seemingly small change has significant implications for both Jio's revenue and consumer spending patterns. By nudging users towards higher-priced plans, Jio is effectively increasing its average revenue per user (ARPU), a crucial metric for telecom companies. A higher ARPU indicates that customers are spending more on services, directly boosting the company's profitability. This strategy aligns with Jio's long-term goal of achieving sustainable financial growth in a highly competitive market. The pressure on other telecom operators, particularly Airtel and Vodafone Idea (Vi), to respond to Jio's plan change is considerable. Both companies are facing their own financial challenges and must carefully balance the need to attract and retain customers with the imperative to increase revenue. Airtel's vice chairman, Gopal Vittal, has openly called for "tariff repair," highlighting the industry's struggle to achieve sustainable returns on investment. This suggests that Airtel may be considering similar price adjustments to improve its financial performance. The competitive landscape of the Indian telecom market is characterized by intense rivalry and frequent price wars. When one major player, such as Jio, makes a significant move, the others are compelled to react to maintain their market share. The potential for Airtel and Vi to follow Jio's lead and increase their entry-level plan prices is high, as they seek to improve their financial stability. However, they must also be mindful of the impact on their customer base, particularly price-sensitive consumers.
Comparing the prepaid plans of different telecom operators provides a clearer picture of the competitive dynamics and pricing strategies in the Indian market. As of now, Vodafone Idea's entry-level 28-day plan offering 1 GB of data per day matches Jio's new entry-level price of Rs 299. This suggests that Vi is attempting to remain competitive with Jio while still maintaining a certain level of profitability. Vi's other plans, such as the 1.5 GB per day plan priced at Rs 349 and the 2 GB per day plan priced at Rs 408, offer consumers more options depending on their data consumption needs. Airtel's pricing strategy is similar to Vodafone Idea's, with its entry-level 28-day plan offering 1 GB of data per day also priced at Rs 299. The 1.5 GB per day plan costs Rs 349, mirroring Vi's pricing. This indicates a general consensus among the major private telecom operators on the minimum price points for these plans. In contrast, BSNL, the state-owned telecom operator, offers significantly lower-priced plans, such as the 30-day plan with 1.5 GB of data per day for Rs 141 and the 30-day plan with 2.2 GB of data per day for Rs 148. These prices are considerably lower than those offered by Jio, Airtel, and Vi, making BSNL an attractive option for budget-conscious consumers. However, BSNL's network coverage and service quality may not be as consistent as those of the private operators. The telecom battle between Airtel and Jio has intensified in recent years, with both companies vying for market dominance. Both Airtel and Jio have made significant investments in their networks and services, resulting in improved coverage and faster data speeds. They have also introduced various prepaid and postpaid offers to attract and retain customers. This competition has benefited consumers by driving down prices and increasing data allowances, but it has also put pressure on smaller players like Vodafone Idea. The financial health of Vodafone Idea remains a concern, as the company continues to struggle with debt and subscriber losses. The company's ability to compete effectively with Jio and Airtel depends on its ability to raise capital and invest in its network. The TRAI data on subscriber additions and losses paints a clear picture of the current market dynamics. Jio has consistently added subscribers, while Airtel has also seen positive growth. However, Vodafone Idea has continued to lose subscribers, indicating that it is struggling to retain its customer base.
Airtel's recent financial performance highlights the company's success in navigating the competitive telecom landscape. In fiscal year 2025, Airtel achieved a record revenue market share of approximately 40%, demonstrating its growing dominance in the Indian market. The company's revenue increased by 17.9% year-on-year to Rs 1.25 lakh crore, with an EBITDA of Rs 57,909 crore. This strong financial performance is attributed to an "improved portfolio mix, continued premiumisation, and tariff repair across our mobile pricing plans," as stated in the company's annual report. Airtel's ability to attract and retain high-value customers has been a key driver of its revenue growth. The company has focused on providing premium services and features, such as faster data speeds and enhanced customer support, to differentiate itself from its competitors. Airtel has also been successful in increasing its ARPU by Rs 36 to Rs 245 in FY25. This indicates that customers are spending more on Airtel's services, contributing to the company's overall revenue growth. The company added 24 million net 4G/5G customers in FY25, demonstrating the increasing adoption of high-speed data services in India. This trend is expected to continue in the coming years, as more consumers upgrade to 4G and 5G devices. The impact of Jio's plan change on Reliance Industries' stock price suggests that investors believe the move will be beneficial for the company. The stock price increased by over 2.5% the day after the announcement, indicating that investors expect Jio to generate higher revenue and profits as a result of the plan change. The elimination of the entry-level plan is likely to increase Jio's ARPU and improve its financial performance. The overall outlook for the Indian telecom market remains positive, despite the challenges posed by intense competition and regulatory hurdles. The increasing adoption of 4G and 5G services, the growing demand for data, and the government's initiatives to promote digital connectivity are expected to drive growth in the sector. The telecom companies that are able to adapt to the changing market dynamics and provide innovative services will be best positioned to succeed in the long run. The telecom sector is crucial to India's economic development, enabling communication, commerce, and access to information for millions of people. The government and industry stakeholders must work together to ensure that the sector remains healthy and vibrant.
Ultimately, the future of prepaid plans in India hinges on a complex interplay of factors, including consumer demand, competitive pressures, and regulatory policies. While Jio's recent move to eliminate its entry-level 28-day plan has certainly stirred the pot, the long-term consequences remain to be seen. Whether Airtel and Vodafone Idea will follow suit, and how BSNL will adapt to the changing landscape, are questions that will be answered in the coming months. Consumers will undoubtedly play a key role in shaping the future of prepaid plans. Their preferences for data allowances, pricing, and service quality will influence the decisions of telecom operators. As the Indian telecom market continues to evolve, innovation and customer-centricity will be essential for success. Telecom companies that can offer compelling value propositions and meet the evolving needs of consumers will be best positioned to thrive in this dynamic environment. The industry must strive to provide affordable and reliable access to communication and data services for all Indians, regardless of their income level or geographic location. This will require a collaborative effort from telecom operators, the government, and other stakeholders. The success of the Indian telecom sector is critical to the country's economic growth and social development.
Source: Which are the cheapest prepaid 28-day packs after Jio's base plan change? Check here