In a significant move that could reshape the Indian telecom landscape, Bharti Airtel has discontinued its entry-level prepaid plan that offered 1 GB of daily data for Rs 249. This strategic decision mirrors a similar action taken by rival Reliance Jio, signaling a potential shift in the industry's pricing strategy.

New Minimum Data Plans

The withdrawal of the 1 GB daily data plan has effectively raised the minimum data offering to 1.5 GB per day. Airtel's new entry-level plan is now priced at Rs 319, slightly higher than Jio's comparable offering at Rs 299. Industry observers expect Vodafone Idea to follow suit, completing a sector-wide realignment of data plans.

Strategy to Boost ARPU

This move is widely seen as a strategy to improve Average Revenue Per User (ARPU), a key metric in the telecom industry. With broad-based tariff hikes not expected until next year, telecom operators are exploring alternative ways to enhance their financial performance.

Potential Impact on Airtel's Financials

According to estimates by JM Financial:

Market Response

The market has responded positively to this strategic shift. Bharti Airtel's shares closed 0.90% higher at Rs 1,909.60 following the announcement.

Industry Implications

This coordinated move by major telecom players suggests a broader industry trend towards optimizing data offerings and pricing strategies. As companies continue to seek ways to improve profitability in a highly competitive market, consumers may need to adapt to evolving plan structures and pricing.

The telecom sector will be closely watched in the coming months as the full impact of these changes unfolds, potentially setting the stage for further adjustments in the run-up to expected tariff hikes next year.

Indian Continent Investment Limited (ICIL), a promoter group entity of Bharti Airtel, has sold approximately 1% of its shareholding in the telecom giant through a market transaction. The sale involved 60 million shares of Bharti Airtel.

Transaction Details

ICIL sold 60,000,000 fully paid-up shares of Bharti Airtel, representing about 0.98% of the company's total share capital. The transaction was executed as a market sale, indicating that the shares were likely sold on the stock exchange.

Impact on Shareholding

Prior to the sale, ICIL held:

• 126,111,188 fully paid-up shares
• 24,156,604 partly paid-up shares

Following the transaction, ICIL's holding has been reduced to:

• 66,111,188 fully paid-up shares
• 24,156,604 partly paid-up shares (unchanged)

The promoter group's overall shareholding in Bharti Airtel has decreased from approximately 2.47% to 1.48% as a result of this sale.

Company's Share Capital

Bharti Airtel's total share capital stands at INR 29,000,886,172.50, divided into:

• 5,702,105,319 fully paid-up shares of INR 5 each
• 392,287,662 partly paid-up shares of INR 5 each (with a paid-up value of INR 1.25 each)

The market transaction does not affect Bharti Airtel's total share capital structure, as it only involves a transfer of existing shares.

Regulatory Compliance

The disclosure of this transaction was made in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011, which requires prompt reporting of significant changes in shareholding by promoter group entities.

Market Implications

While the exact reasons for the sale were not disclosed, such transactions by promoter group entities often attract market attention. The sale could be viewed as a move to monetize assets or realign the promoter group's portfolio.

As Bharti Airtel continues to be a key player in India's telecom sector, market observers will likely monitor any further changes in its shareholding pattern and their potential implications for the company's strategy and governance.