The Department of Telecommunications (DoT) has asked Reliance Jio and Bharti Airtel to explain why they discontinued their entry-level 1GB per day mobile data plans. The move follows concerns that eliminating the cheapest data packs and hiking tariffs could affect affordability for millions of Indian users, especially low-income subscribers.
TRAI Asked To Review
In addition to seeking clarifications, the DoT has directed the Telecom Regulatory Authority of India (TRAI) to review the matter and submit a report. TRAI, the primary industry regulator, has the authority to intervene if consumer interest is at stake, even though operators generally have the freedom to design their tariffs.
Jio and Airtel’s Justification
According to reports, Jio said it discontinued the plans after analysing market conditions, although some of the withdrawn plans are still available offline. Airtel echoed a similar stance, claiming it scrapped its ₹249 plan after assessing customer preferences, aiming to deliver more value through other offerings.
Which Plans Were Discontinued?
Both Jio and Airtel, which together control nearly 75% of India’s telecom market, withdrew their most affordable 1GB/day prepaid recharge packs in August. Jio’s plan priced at ₹249 offered 28 days of validity, while Airtel’s equivalent plan offered 24 days for the same price.
Why Did Telecom Operators Do It?
A JM Financial report highlighted that about 20–25% of Jio and Airtel customers relied on these 1GB plans. Their removal is expected to boost the operators’ average revenue per user (ARPU) by ₹11–13 for Jio and ₹10–11 for Airtel, indicating a revenue-driven motive behind the move.
What Happens Next?
While the telecom giants defend their decision as a business call, DoT and TRAI are closely reviewing the implications. The outcome could set a precedent for balancing affordability with profitability in India’s highly competitive telecom sector. For now, subscribers at the lower end of the market remain the most affected.
