business · 2026-10-12
Airtel's new phone bill: ₹50 more, free roaming
Photo: via BusinessLine
Airtel raised its postpaid phone bills by ₹50, adding a free international roaming pack. That only helps a small part of its users, so the company's revenue lift is small. Bigger gains may come later.
Did Airtel just add ₹50 to every postpaid plan?
Close. Airtel added the same flat ₹50 to every one of its postpaid plans, a rise of 3-11%, taking effect 8 October. But that ₹50 comes with a free international roaming pack, so it is framed as a swap, not a pure price rise. The ₹499 entry plan, for instance, was ₹449.
Why bother if the ARPU gain is only ₹4?
Airtel isn't chasing revenue from this hike. Postpaid users are its most valuable customers, who pay the most and churn the least. The free roaming is a sweetener to keep them loyal despite the ₹50 price rise, protecting the premium base rather than boosting profit.
Is this the start of another industry price hike?
It could be. Airtel moved first this time, after Jio led the last industry-wide tariff hike in June 2024. Brokerage Motilal Oswal expects the sector to see a tariff increase, with analysts building in a 15% hike in smartphone tariffs in December 2026. So this looks like an early signal, not the full round.
How does a postpaid hike connect to Jio's IPO?
The IPO will force the market to set a clear value on Jio's telecom business. If Jio is worth that much, Airtel, with its higher ARPU (average revenue per user) and better cash flow, should be worth comparatively more. A tariff hike signals Airtel can keep improving its economics, which supports the stock.
What is the free international roaming bundle?
Every Airtel postpaid plan now includes one free international roaming pack per SIM per year, valid for five days. It gives 5GB of data, 60 minutes of calls, 25 outgoing SMS and free incoming SMS, and customers can activate it whenever they choose. On family plans, each member gets this pack.
Did Vodafone Idea already offer free roaming too?
Yes. Last month, Vodafone Idea introduced free international roaming on select postpaid, prepaid and enterprise plans, a move to shore up its market share. That competitive pressure is part of why Airtel bundled roaming with its price hike.
Is Airtel testing the waters?
Yes, but not in a tentative way. Airtel's tariff rise is a calculated move to protect its premium postpaid users from competitor poaching, while the bundled free roaming softens the price hike's impact. The real test is whether it can sustain the hike without losing customers to Vodafone Idea.
Did Bharti Airtel shares go up?
Yes, they did. Airtel shares ended 1.29% higher at ₹1,833.90 on the NSE after the tariff announcement, up from the previous close of ₹1,810.50. Motilal Oswal also reiterated its buy rating with a price target of ₹2,250.
Source: thehindubusinessline.com