Airtel, Jio In Focus As Telecom Regulator Questions Decision To Scrap Cheapest Data Pack

India’s telecom regulator has reportedly asked Reliance Jio and Bharti Airtel to explain why they discontinued their cheapest “entry-level” mobile plans.

According to a report by the Mint, Telecom Regulatory Authority of India (TRAI) specifically asked about the 1 GB daily data plans priced around ₹249, citing concerns that low-income users depend on them for basic internet access. This move was flagged by the Department of Telecommunications (DoT), which instructed TRAI to investigate and submit a report on the matter.

Jio said it hasn’t completely removed the plan but repositioned it so that it is available only through its physical stores, while Airtel, following an internal usage and demand analysis, entirely discontinued the ₹249 plan as of August 20.

The two companies now promote plans starting at about ₹299 for 28 days, offering either 1 GB or 1.5 GB daily usage depending on the provider, the report read.

Analyst Take

The move comes at a time when telecom operators are pushing to lift average revenue per user (ARPU) through tariff rationalisation and higher-priced offerings. However, regulatory scrutiny raises the prospect of intervention, which could limit the sector’s ability to adjust pricing freely, said SEBI-registered Front Wave Research.

https://stocktwits.com/frontwave/message/628421536

This is particularly relevant as analysts have long expected steady tariff hikes to drive earnings growth.

For years, India’s telecom market relied on ultra-cheap data to grow the subscriber base. With the shift now toward price-led revenue expansion, government pushback, even on the most basic plans, could signal a more challenging path ahead, they said.

The development is seen as negative for Jio and Airtel, as it increases regulatory risk and could slow ARPU growth. For consumers, however, it raises the chance of retaining affordable entry-level data plans, Front Wave Research added.

Stock Watch

Bharti Airtel’s shares were largely unchanged at ₹1,912.5. Since the company removed its cheapest data plan, the stock has grown 0.8%. Year-to-date, the gains are at 20%.

Retail sentiment on Stocktwits shifted to ‘neutral’ from ‘bullish’ a day earlier.

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