Airtel’s prepaid plan hike sparks protests over rising costs and ‘digital inflation'

Bharti Airtel has withdrawn affordable prepaid options and increased prices, prompting trade groups to demand government intervention amid fears of rising ‘digital inflation’ affecting lower-income users.

Bharti Airtel has removed several prepaid recharge options from August 12 and raised the price of some others, a move that is likely to push up monthly phone bills for many users. The Chamber of Trade and Industry, or CTI, has objected to the changes and written to Union telecom minister Jyotiraditya Scindia, asking the government to curb further tariff increases and restore lower-priced plans.

According to CTI, the ₹299 pack that offered 1GB of daily data has been withdrawn and replaced by a ₹349 option. The group said some mid-range plans, including ₹579, ₹619 and ₹649, have also gone, while the ₹859 plan has risen to ₹899. CTI chairman Brijesh Goyal described the broader trend as “digital inflation” and argued that affordable mobile data is now a basic requirement for households, students, older people, small firms and lower-income users.

CTI said the higher charges could add about ₹200 a month for a family of three or four that relies on prepaid mobile connections. It wants the government to stop telecom companies from changing tariffs without approval, to restore cheaper plans and to give the Telecom Regulatory Authority of India more power over pricing. The group also wants calling-only plans without data to be made available for people on tighter budgets.

The dispute comes after Airtel’s wider move to lift entry-level prepaid prices across India over the past year. Business Standard reported in March 2023 that the company had completed increases across all 22 circles, replacing the ₹99 plan with a ₹155 option, while other reports said the lower-cost plans were later removed nationwide. CTI has warned that if no action is taken within 15 days, it will join traders in protests in Delhi.