Airtel's Prepaid Plan Changes Expected to Boost ARPU Through Premiumisation

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 $BHARTIARTL has restructured its prepaid portfolio by discontinuing select lower-priced recharge plans as part of its strategy to encourage users to migrate to higher-value plans. According to brokerage estimates cited in the report, these changes are expected to increase the company's Average Revenue Per User (ARPU) by ₹4–₹12, strengthening revenue generation without a broad-based tariff hike. The move is aimed at premiumisation and better monetisation of Airtel's subscriber base by nudging customers toward plans with higher validity, larger data benefits, or additional services. The targeted rationalisation of prepaid plans allows the telecom operator to improve customer value while enhancing overall revenue per subscriber. The strategy follows Airtel's continued focus on improving profitability through higher-quality subscriber additions and increased digital service adoption. Industry & Economic Impact: The move reflects an ongoing trend in India's telecom industry, where operators are increasingly focusing on premiumisation rather than aggressive subscriber growth. Higher ARPU enables telecom companies to invest more in network expansion, 5G rollout, digital services, and customer experience while maintaining financial sustainability. From an economic perspective, stronger telecom revenues support continued investment in digital infrastructure, improve connectivity, and accelerate the adoption of digital services across businesses and consumers. These investments contribute to productivity, financial inclusion, and long-term growth of India's digital economy. Source: Business Standard No Recommendations