Airtel increases price of minimum monthly recharge plan in these states

Till now, the cost of Airtel‘s minimum recharge plan in Haryana and Odisha was ₹99. It offered 200 MB mobile data and calls at the rate of ₹2.5 paise per second. The telco now offers ₹155 plan which offers unlimited voice calling along with 1GB total data and and 300 SMSes.

According to a PTI report, the company has started trial of the new plan and is likely to roll out the same across India based on the result. It says that the telecom company may soon end all 28-day calling plans with SMS and data that are priced below ₹155. 

ICICI Securities said that Bharti Airtel has embarked on a market-testing tariff hike in Haryana and Odisha circles, and the move has just added a huge upside risk to its estimates.

“The earlier ₹99 recharge had ₹99 talk-time value and very limited data of 200 MB valid for 28 days. In contrast, the now-adopted ₹155 minimum recharge gives unlimited voice, 1GB data allowance and 300 SMSes. This is a massive 57 per cent surge in minimum recharge value, and has been done in the customer segment where affordability matters the most,” ICICI Securities report by research analysts Sanjesh Jain and Akash Kumar said.

“Bharti has taken the industry’s first step in implementing a tariff hike in the current market situation. We expect it to now wait for a competitive reaction. If it does not find enough support, then Bharti may be required to restore the ₹99 pack. It would then be difficult to imagine who would take the next step for a tariff hike — and would Bharti support it? Or has Bharti ‘made an offer its competitors cannot refuse?’ In our view, yes it has,” the report further stated. 

Airtel did a similar market-testing in 2021 when it increased its minimum recharge offer from ₹79 to ₹99 in select circles, the report said.

(With inputs from PTI)