TRAI Test: Why Jio and Airtel’s Tariff Hikes Threaten Digital India
Telecom Minister Ashwini Vaishnaw inaugurated Nokia's 6G research laboratory
Scrapping the cheapest prepaid plans risks widening the digital divide and undermining India’s growth story. Regulators cannot afford to stay silent.
By Sanjay Singh
NEW DELHI, September 16, 2025 — India’s telecom revolution was built on one promise: cheap data for all. Reliance Jio and Bharti Airtel turned that promise into reality, pulling millions of low-income Indians online and stoking what policymakers call the backbone of “Digital India.”
Now, the same companies are dismantling that foundation. Both operators have quietly scrapped their cheapest prepaid data packs — the popular ₹249 recharge that offered about 1GB per day. Jio’s plan ran for 28 days, Airtel’s for 24. For millions of students, gig workers, and small traders, this was the entry ticket to the digital economy. Its removal is more than a pricing adjustment; it signals a structural reset.
Analysts estimate nearly a quarter of Jio and Airtel subscribers used these budget packs. Their discontinuation could raise average revenue per user by ₹10–13 monthly, delivering billions in additional revenue. For households already squeezed by inflation, however, the shift means higher barriers to connectivity.
Operators claim the decision reflects “market analysis” and “user preferences.” Jio says some discontinued packs remain in offline stores, while Airtel insists it is “adding value.” But this dual strategy — quietly limiting visibility of cheaper plans online while nudging customers to pricier bundles — reveals the real play: monetisation after market capture.
It is worth recalling how we got here. Jio’s dirt-cheap tariffs in the late 2010s triggered a brutal price war, crippling Vodafone Idea and consolidating the sector into a two-player oligopoly. Having achieved dominance, the telcos are now focused on extracting higher margins, whether through costlier “bundled” packs, shorter validity cycles that force extra recharges each year, or selective availability of plans across channels.
The social cost is substantial. India still has deep income inequalities. For a rural student accessing online lectures, or a delivery worker depending on job apps, the loss of budget data plans could mean exclusion. Ironically, just as India boasts of being the world’s cheapest data market, its two biggest operators are eroding that very distinction.
The government has noticed. The Department of Telecommunications has asked the Telecom Regulatory Authority of India (TRAI) to examine whether the withdrawal of entry-level plans undermines affordability. TRAI has the authority to act in consumer interest, but past interventions have been cautious. Operators argue they need pricing freedom to recover massive 5G investments. That claim is valid — but it cannot justify leaving low-income users stranded.
A middle path is possible. Regulators should insist on:
- Transparency — Plans labelled “monthly” must carry at least 30 days’ validity. Anything less is misleading.
- Parity — If a plan is sold offline, it should also be available online, preventing discriminatory visibility.
- Inclusion — India should introduce a “social tariff” — a regulated no-frills plan guaranteed at a low rate, supported by Universal Service Obligation funds or a levy on premium packs.
Connectivity today is not a luxury; it is as essential as electricity or clean water. If affordable data vanishes, India’s digital success story risks turning into a tale of exclusion. The country’s trillion-dollar digital economy target for 2030 will mean little if millions are priced out of basic access.
By scrapping their cheapest packs, Jio and Airtel may gain in quarterly earnings. But if regulators do not act, the long-term cost will be borne by the very idea of Digital India. TRAI’s response will decide whether data remains the great equaliser — or becomes a privilege once again.
(This is an opinion piece, and views expressed are those of the author only)
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