Airtel Brings Back ₹299 Plan as Subscriber Growth Slows

Bharti Airtel Ltd (NSE: BHARTIARTL) has brought back its ₹299 prepaid recharge plan after subscriber additions slowed sharply during Q2FY27. The telecom operator had withdrawn the entry-level plan in August 2026 as part of efforts to increase average revenue per user (ARPU).

The move highlights the challenge telecom companies face in raising customer spending without losing price-sensitive subscribers to competing networks.

Airtel's mobile ARPU increased to ₹271 in Q2FY27, but customer churn also rose during the quarter.

Why Did Airtel Bring Back the ₹299 Plan?

Airtel withdrew its earlier ₹299 prepaid recharge option in August.

The plan previously offered 1.5 GB of daily data, while customers seeking similar daily data benefits were directed towards higher-priced plans.

The withdrawal increased the minimum recharge cost for some customers.

In November, Airtel restored the ₹299 recharge option with revised benefits.

The new plan provides 1 GB of daily data, unlimited voice calls and 100 SMS per day for 28 days.

Although the recharge price has returned, the lower daily data allowance means customers requiring additional internet usage may still spend more.

The change allows Airtel to retain a lower-priced option while encouraging heavier data users to choose higher-value plans.

Q2FY27 Subscriber Growth Slows Sharply

Airtel's September quarter data showed a considerable slowdown in net mobile subscriber additions.

The company added approximately 7.2 L mobile subscribers during Q2FY27, compared with 32.7 L in the preceding quarter.

Monthly customer churn increased from 2.6% in Q1FY27 to 2.9% in Q2FY27.

Despite weaker overall subscriber additions, Airtel continued to increase revenue from its existing customer base.

Mobile ARPU rose approximately 2.7% QoQ, while mobile revenue increased 3.4% sequentially.

The company also added approximately 1.2 mn postpaid customers during the September quarter.

Postpaid customers accounted for 8.3% of the company's mobile subscriber base.

Airtel and Jio Show Different Revenue Trends

Reliance Jio (NSE: JIO) and Bharti Airtel have followed different approaches to improving customer revenue.

Airtel has focused on increasing spending through higher-value plans, postpaid subscriptions, roaming and data upgrades.

Jio continues to operate with a comparatively lower ARPU.

During Q2FY27, Jio's ARPU increased to ₹218.8, compared with Airtel's ₹271.

This represents a difference of ₹52.2 per user per month.

However, ARPU alone does not determine telecom profitability.

Subscriber scale, network investment, spectrum costs, operating expenses and customer retention also influence earnings.

Why Is Affordability Important for Telecom Stocks?

India's telecom market contains customers with widely different spending capacities.

While some users are willing to pay more for higher data allowances and premium services, others remain sensitive to relatively small increases in recharge prices.

When a company increases tariffs without similar changes across competing networks, customers may switch providers.

Higher churn can increase customer acquisition costs and reduce the benefits of higher tariffs.

Telecom operators must therefore balance revenue growth with subscriber retention.

Outlook for Telecom Tariffs

Airtel's decision to restore its ₹299 plan demonstrates the importance of affordable entry-level pricing in India's mobile market.

Future ARPU growth may increasingly depend on customers voluntarily upgrading to higher-data plans, postpaid services and additional digital offerings.

For telecom companies, the important indicators will be ARPU, subscriber additions, churn and cash generation.

The September quarter showed that higher customer spending can support revenue growth, but pricing changes that reduce subscriber additions may create challenges for future expansion.