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TRAI Questions Airtel, Jio Over Removal of Entry-Level Plans: Report

Written by: Team Angel OneUpdated on: 12 Sept 2025, 5:46 pm IST
TRAI seeks an explanation from Airtel and Jio after removing ₹249 1GB/day entry-level plans, raising affordability concerns for low-income users.
TRAI Questions Airtel, Jio Over Removal of Entry-Level Plans: Report
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The Telecom Regulatory Authority of India (TRAI) has asked Reliance Jio and Bharti Airtel to explain their decision to withdraw their ₹249 entry-level mobile data plans, both offering 1GB per day, as per the Mint report. The move sparked apprehensions over internet affordability for economically weaker users who depend on low-cost access.

Entry-Level Plan Removal Triggers Government Scrutiny

Until recently, Airtel and Reliance’s Jio each provided a ₹249 data plan offering 1GB per day. Airtel’s pack had a 24-day validity, while Jio’s lasted 28 days. However, both companies withdrew these popular offerings in August 2025. 

In response, TRAI, encouraged by the Department of Telecommunications (DoT), sought written justifications from both operators on the impact such withdrawals could have on digital access for the economically lower segment.

Jio and Airtel Provide Standpoints

As per the report, Jio reportedly indicated that certain plans still exist but are confined to physical stores. It repositioned its packages based on market trends. Airtel, which phased out the ₹249 plan from August 20, 2025, introduced a revised ₹299 plan with 28-day validity offering 1GB daily. Airtel described this as a value enhancement based on internal market and user preference analyses.

Read More: Starlink to Tap Telcos and Data Centres Ahead of India Launch!

Affordability Versus Monetisation Strategy

The industry is witnessing a focus on increasing average revenue per user (ARPU) instead of maintaining ultra-low-cost offerings. Jio now offers 1.5GB per day at ₹299 for 28 days. India, despite historically cheap telecom rates, now faces criticism for unaffordability, especially when plans account for 1.24% of per capita GDP, higher than countries like China and Indonesia.

Tariff Trends Driven by 5G Rollout

In July 2024, telecom operators initiated a tariff hike after 2 years, citing high infrastructure spending on 5G deployment. Jio’s June-end ARPU rose to ₹208.80, whereas Airtel’s stood at ₹250, both boosted by users migrating to higher packages. The current changes could further elevate these figures without formal tariff hikes.

Conclusion

The regulator's intervention into Airtel and Jio's tariff decisions highlights ongoing tensions between market freedom and consumer welfare. As telecom firms realign their pricing strategies around growing data consumption, ensuring digital inclusion remains critical amid rising service costs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Sep 12, 2025, 12:16 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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