Bad News for Jio, Airtel Customers: Mukesh Ambani, Sunil Mittal’s Companies Discontinue Plans, Increase Data Prices
India’s telecom giants, Reliance Jio and Bharti Airtel, led by Mukesh Ambani and Sunil Mittal respectively, have recently made moves that have left millions of customers facing higher costs for mobile and broadband services. In a bid to boost revenue and fund 5G network expansions, both companies have discontinued popular low-cost prepaid plans and are reportedly planning tariff hikes by late 2025. This blog explores the recent changes, their impact on customers, and what lies ahead for India’s telecom sector.
Discontinuation of Affordable Plans
On August 20, 2025, both Jio and Airtel discontinued their popular Rs 249 prepaid plans, which offered 1 GB of daily data, unlimited calls, and 100 SMS per day for 28 days. This entry-level plan was a favorite among budget-conscious users, particularly in rural and semi-urban areas. With these plans scrapped, customers are now forced to opt for more expensive alternatives, such as Jio and Airtel’s Rs 299 plan, which provides 1.5 GB of daily data but costs 20% more. For those seeking cheaper options, Airtel offers a Rs 219 plan with limited data, but it falls short of the value provided by the discontinued plan.
Industry insiders suggest that Vodafone Idea (Vi) may soon follow suit, further limiting affordable options for consumers. The move is part of a broader strategy to increase Average Revenue Per User (ARPU), a key metric for telecom operators, as they aim to recover high costs from spectrum purchases and 5G infrastructure development.
Tariff Hikes on the Horizon
Adding to the burden, reports indicate that Jio, Airtel, and Vi are planning another round of tariff hikes by November or December 2025, potentially increasing mobile recharge prices by up to 15%. This follows a significant tariff increase in mid-2024, which led to a mass exodus of subscribers to state-owned Bharat Sanchar Nigam Limited (BSNL), with Jio losing 7.9 million users, Airtel 1.4 million, and Vi 1.5 million in September 2024 alone.
The planned hikes are driven by the need to fund 5G network expansion and cover the high costs of spectrum auctions. For instance, a Jio plan currently priced at Rs 299 could rise to approximately Rs 344, while Airtel’s similar plan may see a comparable increase. These hikes could significantly impact budget users, who form a large portion of India’s telecom subscriber base.
Why Are Jio and Airtel Raising Prices?
The telecom industry in India is at a critical juncture. Jio and Airtel have invested heavily in 5G infrastructure, with Jio boasting 148 million 5G users and Airtel 105 million as of September 2024. However, the costs of spectrum acquisition and network upgrades are substantial, pushing operators to prioritize revenue generation over affordability.
Additionally, both companies are focusing on “portfolio premiumization,” encouraging users to shift to higher-value plans with 4G/5G connectivity and bundled services like OTT subscriptions. For example, Airtel’s Rs 299 plan now includes a 12-month Perplexity Pro subscription worth Rs 17,000, aiming to add value for premium users. Jio, meanwhile, has introduced budget-friendly plans like the Rs 86 plan with 20 GB daily data to retain customers, but these are short-term and limited in scope.
The competitive pressure from BSNL, which gained 5.5 million subscribers between July and October 2024 due to its affordable plans, has also forced private operators to rethink their strategies. BSNL’s Rs 47,000 crore investment in 4G and 5G networks, coupled with offers like the Fiber Ruby plan (1 Gbps speed, 9500 GB data, and free OTT subscriptions), is challenging Jio and Airtel’s dominance.
Impact on Customers
The discontinuation of the Rs 249 plan and impending tariff hikes will hit budget-conscious consumers the hardest. Rural users, students, and small business owners who rely on affordable data plans may face increased financial strain. For example:
- A Jio or Airtel user previously paying Rs 249 for 28 GB of data (1 GB/day) over 28 days now needs to spend Rs 299 for 42 GB (1.5 GB/day), a 20% price increase for more data than some users need.
- The absence of low-cost plans limits options for light data users, forcing them to either pay more or reduce usage.
- The planned 15% tariff hike could add Rs 45–100 to monthly recharge costs, depending on the plan, impacting millions of households.
Moreover, the shift to premium plans may not suit all users, as many do not require 5G speeds or OTT subscriptions. The loss of subscribers to BSNL in 2024 highlights consumer frustration with rising costs, and another hike could drive more users away from private operators.
Competitive Landscape and BSNL’s Resurgence
BSNL’s revival poses a significant challenge for Jio and Airtel. With plans like the Rs 1 Freedom Offer and the Fiber Ruby OTT plan, BSNL is attracting cost-sensitive customers. The state-owned operator’s focus on indigenous 4G technology and plans to roll out 100,000 4G towers by mid-2025 could further erode the market share of private players.
Meanwhile, new entrants like Elon Musk’s Starlink, which plans to offer satellite internet at Rs 840 per month, could disrupt the broadband market, challenging Jio Fiber and Airtel Xstream. The Telecom Regulatory Authority of India’s (TRAI) new licensing framework, approved by the Digital Communication Commission, may also reduce Jio and Airtel’s duopoly by encouraging new players, further intensifying competition.
What Can Customers Do?
As Jio and Airtel move toward higher tariffs, customers have a few options:
- Explore BSNL Plans: BSNL’s affordable plans, like the Fiber Ruby OTT plan or Rs 1 Freedom Offer, offer competitive alternatives for budget users.
- Opt for Short-Term Plans: Jio’s Rs 86 and Airtel’s Rs 99 plans provide high-speed data for short durations, ideal for occasional users.
- Contact Customer Care: Airtel users can call 121 to inquire about plans tailored to their needs, while Jio users can check the MyJio app for updates.
- Monitor Usage: With data plans becoming costlier, users can optimize data consumption by using Wi-Fi or limiting streaming.
Conclusion
The discontinuation of Jio and Airtel’s Rs 249 plans and the looming 15% tariff hike by late 2025 are bad news for millions of customers, particularly those seeking affordable mobile and broadband services. While the companies aim to boost ARPU and fund 5G expansion, the move risks alienating budget users, many of whom are already switching to BSNL. With competition heating up from BSNL and potential disruptors like Starlink, Jio and Airtel must balance profitability with customer retention. For now, consumers are advised to explore alternative plans and brace for higher costs as India’s telecom landscape evolves.
Disclaimer: This blog is based on reports and industry insights as of August 2025. Tariff changes and plan details are subject to confirmation by Jio, Airtel, and regulatory authorities. Check official sources for the latest updates.
