Bharti Airtel saw limited rural churn after August prepaid plan cuts

TL;DR: Bharti Airtel did not see significant churn among rural and semi-urban users after discontinuing several prepaid plans in August, according to an IIFL Capital channel check published on October 6, 2026. IIFL said Maharashtra retailers reported limited switching, while Rajasthan retailers saw higher churn toward Reliance Jio. Analysts had earlier said the plan changes could lift Airtel ARPU by ₹4-6 in FY27.

Bharti Airtel did not see significant churn among rural and semi-urban subscribers after discontinuing certain prepaid plans in August, according to an IIFL Capital research note cited on October 6, 2026. IIFL said store visits across small cities and towns in Rajasthan and Maharashtra found that retailers had not seen significant switching to other operators after the changes.

In August, Airtel withdrew four prepaid plans: the ₹299 plan with 28-day validity and 1.5GB per day, the ₹579 plan with 56-day validity and 1.5GB per day, the ₹649 plan with 56-day validity and 2GB per day, and the ₹619 plan with 60-day validity and 1.5GB per day. Analysts had earlier said the move could push users to higher-priced plans with longer validity and more data, resulting in a ₹4-6 ARPU increase for Airtel in FY27.

IIFL said Maharashtra retailers had not seen significant churn to other operators after Airtel's plan withdrawals, although some users moved to Reliance Jio because of a perception that Jio offers the cheapest plans. In Rajasthan, retailers reported higher churn toward Jio after the discontinuation, while IIFL said there was no meaningful shift toward Vodafone Idea because of weaker network quality in the state.

IIFL said the ₹349 plan with 28-day validity is currently the most popular plan for Airtel and Jio, while Vodafone Idea's most popular offer is its ₹299 plan with 28-day validity. For customers focused mainly on calling benefits, retailers said the ₹199 plan with 28-day validity is popular. IIFL also said analysts expect another round of prepaid tariff hikes in the next four to five months, with headline prices potentially rising by 12-15%.