Airtel hikes postpaid tariffs after over two years, sets the tone for peers

Airtel’s move comes just weeks ahead of the expected initial public offering (IPO) of Jio Platforms, the parent of Reliance Jio, the market leader by subscribers. A tariff increase can lift Airtel's revenues—and, in turn, valuations—putting pressure on Jio to follow suit as it prepares to sell shares to public investors.

For India's telecom industry, hiking tariffs and pushing subscribers up the value chain is the only way to bump up their revenues.

Airtel had last raised its headline tariffs in June 2024, after a gap of two years, following Jio. The same was driven by the industry’s move to improve return on capital employed and Arpu. Airtel's postpaid hikes in 2024 were in the 13-20% range. That year, the tariff hikes were led by Jio, and its private sector peers Airtel and Vodafone Idea took cue.

Airtel currently has six postpaid plans. The ₹449-postpaid plan will now come for ₹499, including bundling subscriptions of Xstream Play Premium and Google One and one free international roaming trip per SIM per year. In the higher tier, the current ₹1,749-plan will come for ₹1,799, which includes OTT subscriptions and other benefits.

At the end of the June quarter, Airtel had 30 million postpaid users, which is 8% of its India mobile subscriber base of 376.5 million.

Industry experts believe the latest tariff hike is unlikely to bring any major boost for its average revenue per user (Arpu), the key measurable of an operator's muscle.

“Airtel has only 30 million postpaid users, so the tariff hike is unlikely to have a major impact on its blended Arpu,” said Parag Kar, an independent telecom analyst. “The maximum increase in Airtel’s Arpu is likely to be about ₹4, or 1.5% of its current Arpu of ₹264.”

“What Airtel may be counting on is that it can sustain the tariff hike without losing customers to Vodafone Idea, particularly as it rolls out its Fast Lane technology,” Kar said.

Arpu shows whether an operator has paying customers and if so, then whether they are willing to pay a high price plan for the services offered. In comparison with Airtel's industry leading Arpu, Reliance Jio’s was at ₹215.6 a month end June, while that of Vodafone Idea was at ₹177.

Airtel's postpaid tariff hike comes two months after its August move to scrap the entry-level ₹299 monthly prepaid plan that offered 1 GB data per day. To get a daily data allowance for 28 days, subscribers must now upgrade to the ₹349 plan, marking a ₹50 (16.7%) increase for an offering that includes 1.5 GB daily data and unlimited 5G access.

Vodafone Idea retained its base tariff plan of ₹299 offering 1 GB data daily, whereas Reliance Jio, which offers 1.5 GB per day data, also stuck with its ₹299 entry-level plan. Interestingly, with a one-time charge of ₹300 in the Jio Prime membership plan, Reliance Jio offers users protection against any tariff hike for the next one year at a one-time charge of ₹300 through the Jio Prime membership programme.

In August 2025, Reliance Jio, the largest operator by market share, had removed its entry-level ₹249 prepaid plan (1GB daily data) from online platforms, a move subsequently matched by Airtel and Vodafone Idea.

Vodafone Idea in a bid to shore up its market share, had last month introduced free international roaming across its select postpaid, prepaid and enterprise plans.

Jatin Grover

Jatin is based in New Delhi and writes on telecom and technology with a keen interest in policy and regulation. With over five years of reporting experience across Informist Media, Financial Express and now Mint, he has extensively covered the telecom, information technology, electronics and semiconductor sectors.A commerce graduate, Jatin's work focuses on tracking industry developments, regulatory changes and policy decisions that shape India’s evolving digital ecosystem. Over the years, he has reported on key trends and shifts across these sectors, bringing clarity to complex policy and business issues.Known for his strong news sense, Jatin focuses on breaking stories and delivering in-depth reporting that offers readers an understanding of complex topics, policy decisions and corporate developments. His work often examines the intersection of policy and business, highlighting how regulatory decisions impact industry strategy, pricing, and consumer outcomes.He brings a strong domain understanding for Mint and his work is widely picked up by other media firms. With a focus on accuracy and depth, he aims to break down developments into clear, accessible insights for readers, while continuing to track emerging trends shaping the future of India’s telecom and technology sectors.