Reliance Jio, India’s largest telecom operator, has once again shaken up the industry with a major pricing move. The company has discontinued its entry-level recharge plans, a step that directly impacts millions of users as well as the broader telecom and stock market landscape. Following this announcement, Reliance Industries’ shares jumped over 2%, making it one of the top contributors to the Nifty 50 rally on Tuesday.
But beyond the stock market reaction, this change has serious implications for ordinary telecom customers, industry revenues, and long-term investors. Let’s break down the entire story.
What Has Changed in Jio’s Plans?
Reliance Jio has discontinued its cheapest recharge packs, including:
₹209 plan (22 days validity)
₹249 plan (28 days validity)
Now, customers will be compelled to opt for the ₹299 plan with 28 days validity as the new entry-level option.
Importantly, Jio has slightly sweetened the deal in terms of data. The ₹299 plan offers 1.5GB of daily data, compared to the earlier 1GB daily data.
This means customers will now spend more, even if they do not need the additional data.
Impact on Jio’s Revenue
By eliminating the cheaper options, Jio is aiming to boost its Average Revenue Per User (ARPU) — a critical industry metric.
Current ARPU: ₹211
Expected ARPU after change: ₹253
Growth: Around 20%
This will significantly enhance Jio’s earnings per customer, strengthening the company’s overall telecom revenue stream.
Stock Market Reaction
The move has already reflected in the stock market:
Reliance Industries shares surged over 2% during morning trade on Tuesday.
Bharti Airtel also gained nearly 1.5% on the same day.
Reliance stock has already gained 16.5% so far in 2025, with this announcement adding further momentum.
Trading volumes in Reliance were higher than usual, making it the top Nifty 50 contributor for the day.
Why Are Telecom Companies Raising Tariffs Repeatedly?
This is not the first time telecom operators have hiked tariffs. In 2024, Jio, Airtel, and Vodafone Idea increased their plans by 19–21%.
The key reasons are:
Heavy 5G Investments: Building and expanding 5G networks requires massive capital expenditure.
Sustainability of Industry: With rising operational costs and low ARPU compared to global markets, tariff hikes are seen as necessary for long-term survival.
Market analysts (ERA Research) have also indicated that another round of tariff hikes of 15–20% could come between October 2025 and January 2026.
Strategy Behind Jio’s Move
Unlike earlier hikes, this time telecom operators are not touching validity periods but only increasing the headline prices.
Airtel and Vodafone Idea already have their base plans priced at ₹299, offering 1GB daily data.
Jio has now aligned with them, but with a slightly better offering of 1.5GB daily data at the same price.
This strategy makes it difficult for customers to switch away from Jio, as the pricing gap has been closed.
Effectively, the move ensures higher ARPU while reducing the risk of customer churn.
What Should Investors Do?
Reliance remains a favorite among analysts:
Bloomberg data shows that out of 36 analysts covering Reliance Industries, 33 have given a “Buy” rating.
The 12-month average target price stands at ₹1,629, which is about 15% higher than the current levels.
Analysts believe that with telecom revenue growth, the company’s stock could see further upside in the coming quarters.
This makes Reliance a strong long-term bet for investors, though as always, individual financial advice should be considered before making any decisions.
The Consumer’s Dilemma
While the move is positive for telecom companies and stock market investors, it adds an extra burden on common telecom subscribers.
Customers who earlier managed with ₹209 or ₹249 packs will now be forced to spend ₹299 every 28 days.
Effectively, this means an increase in annual telecom expenses, especially for lower-income groups who depend on affordable packs.
Switching to other operators will not help much, as Airtel and Vodafone Idea are already priced at ₹299.
Conclusion
Reliance Jio’s decision to scrap its entry-level plans marks another significant turning point in India’s telecom sector.
For customers, it means higher monthly bills.
For Jio and the industry, it means stronger ARPU and revenue growth.
For investors, it signals further stock market gains as Reliance consolidates its leadership in telecom and strengthens its broader business model.
With another round of tariff hikes expected in late 2025 or early 2026, Indian telecom users must brace for higher costs, while investors may continue to ride the upward wave of telecom-driven growth in Reliance Industries.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Please consult your financial advisor before making any investment decisions.
