Reliance Jio and Airtel have abruptly discontinued their lowest-cost 1GB per day prepaid plans, affecting millions of USA subscribers directly.
Jio has removed its ₹209 (22 days, 1GB/day) and ₹249 (28 days, 1GB/day) plans. Airtel has also discontinued its ₹249 plan, reducing low-cost data options.
With these budget-friendly plans gone, both telecom giants are now steering users toward costlier 1.5GB per day plans, which means higher monthly spending for the same users who relied on cheaper data packs.
This change marks a significant shift in the USA telecom market, as crores of prepaid users will now have to pay more for daily data usage. For those who depended on 1GB/day plans, the switch to pricier 1.5GB/day plans could noticeably impact their mobile budgets.
Plans are gone, what’s new now?
Jio’s popular ₹209 and ₹249 prepaid plans are no longer available for online recharge. Although they may still appear occasionally in the MyJio app or at offline outlets, they are being phased out effectively. On the other hand, Airtel has completely discontinued its 1GB/day plan, leaving prepaid users with no low-data, budget-friendly options.
Now, the entry-level plan for Jio starts at ₹299 (1.5GB/day, 28 days), while Airtel’s base plan begins at ₹319 (1.5GB/day, 28 days). This shift means there are no cheaper plans with limited daily data—users must either consume more data or pay more money.
The new pricing structure makes these plans approximately 17–20% more expensive. This directly increases monthly expenses for millions, especially students and low-income users who depended on affordable 1GB/day packs.
Why are telecom companies doing this?
Industry analysts believe that Jio and Airtel’s decision to discontinue their cheapest 1GB/day prepaid plans is part of a larger strategy to boost Average Revenue Per User (ARPU). Both telecom giants have invested heavily in 5G rollout and spectrum purchases, and increasing ARPU is crucial to recover those costs.
According to Crisil Ratings, telecom operators’ operating profit is expected to rise by 12–14% in FY25, as users consume more data and are being pushed toward costlier plans. Effectively, this move works like a silent tariff hike, even without an official headline increase. Experts even predict a bigger tariff hike in 2026, possibly around 15–20%.
The impact on users is significant. Approximately 20–25% of Jio subscribers and 18–20% of Airtel users were on 1GB/day packs. With these plans gone, they will now have to migrate to ₹299–₹319 plans, leading to higher monthly bills. For the companies, however, the math is favorable: Jio’s Average Revenue Per User (ARPU) could rise by ₹11–13 per user monthly.
- Airtel’s ARPU could increase by ₹10–11 per user monthly.
- By FY27, Jio’s EBITDA could grow by ₹1,900–2,200 crore, while Airtel’s wireless EBITDA could gain ₹1,800–2,000 crore, according to analysts.
In short, the move is a big profit boost for telecom companies but a financial burden for users, especially those in the budget segment.
What is the effect on users?
Higher Costs for Users
Those recharging with ₹249 must now choose between ₹299 or ₹319 plans, resulting in a ₹50–70 increase every 28 days—a yearly increase of ₹600–800.
More Data, But Is It Necessary?
The new packs offer 1.5GB/day, but many users only need 1GB/day, forcing them to pay for more data than needed.
Impact on Low-Income Users
Students, shopkeepers, and daily wage workers who relied on affordable 1GB/day plans now face a financial burden. Some may switch to BSNL, which still offers cheaper data for now.
What changes will come in the market?
Jio and Airtel’s move to discontinue their cheapest 1GB/day prepaid plans may also shift market dynamics. Vodafone Idea (Vi), which is also seeking to enhance its Average Revenue Per User (ARPU), may soon discontinue its 1GB/day plan as well.
Analysts believe this is part of a broader strategy to prepare for the monetization of 5 G. Data usage is already surging, with Jio subscribers consuming around 37GB per month and Airtel users averaging 26.9GB per month as of FY24. For telecom operators, this rising demand represents a huge revenue opportunity in the future.
In the short term, customers must now spend more on higher data packs, raising their monthly expenses.
Tariff hikes expected in late 2025
Industry experts believe that the discontinuation of cheaper 1GB/day plans by Jio and Airtel is just the beginning. According to a report by NDTV Profit, analysts at ICRA expect another round of telecom tariff hikes between October 2025 and January 2026.
Ankit Jain of ICRA stated that the next hike is likely to be smaller than the 2024 revision, which raised tariffs by 19–21%. This time, the increase is expected to be capped at 15–20%.
“A tariff hike is imminent. We expect it to be less than last year, under 15–20%. Going forward, operators may increase tariffs more frequently than once every two years,” said an ICRA analyst.
If implemented, this hike could lift the telecom industry’s Average Revenue Per User (ARPU) from around ₹200 in FY25 to nearly ₹220 in FY26, further boosting profitability for Jio, Airtel, and Vodafone Idea.
Frequently Asked Questions
Why did Jio and Airtel discontinue their 1GB/day prepaid plans?
Both Jio and Airtel removed their cheapest 1GB/day plans as part of a strategy to increase Average Revenue Per User (ARPU) and recover heavy investments in 5G rollout and spectrum purchases.
Which Jio plans have been discontinued?
Jio has discontinued the ₹209 plan (22 days, 1GB/day) and the ₹249 plan (28 days, 1GB/day) from its online and offline recharge options.
Which Airtel plans are no longer available?
Airtel has completely discontinued its ₹249 plan (1GB/day, 28 days), leaving no entry-level daily data packs under ₹299.
What are the new entry-level prepaid plans for Jio and Airtel?
- Jio’s base plan: ₹299 (1.5GB/day, 28 days)
- Airtel’s base plan: ₹319 (1.5GB/day, 28 days)
How much will users pay in extra fees now after this change?
Users who previously recharged with ₹249 will now spend ₹50–70 more every 28 days, which translates to an additional ₹600–800 per year.
What if a user only needs 1GB/day instead of 1.5GB/day?
Currently, there is no 1GB/day option available from Jio or Airtel. Users will be forced to pay for 1.5GB/day packs, even if they don’t need the extra data.
Who will be most affected by this change?
The move mainly impacts students, low-income users, small shopkeepers, and daily wage workers who relied on cheaper 1GB/day plans for affordability.
Conclusion
The end of affordable 1GB/day prepaid plans by Jio and Airtel marks a major shift. Students, low-income, and budget users must now turn to costlier 1.5GB/day plans, raising monthly costs by 17–20%.