In what may disappoint 5G users in India, leading telecom operators Bharti Airtel and Reliance Jio are expected to scrap their unlimited 5G data offerings by mid-2024. They are likely to charge at least 5-10% more than current 4G plans to boost monetization, as per Economic Times report.
And by September, 2024, data tariff can be increased by up to 20%.
End of Free 5G Ride
As per a Economic Times report citing analyst notes, the era of free unlimited 5G services on existing 4G plan rates seems to be concluding soon.
Airtel and Jio first launched 5G services with much fanfare in Oct 2022, offering it as free add-on benefit to 4G subscribers. This helped quickly on-board over 125 million 5G users between them so far.
But with 5G rollouts scaling pan-India in 2023, the operators will focus more on driving revenues through premium 5G plans beyond a point.
5-10% Costlier 5G Plans on Cards
As per projections, Airtel and Jio’s 5G packs could be priced 5-10% higher than their 4G plans by H2 2024 while bundling 30-40% more data. This will balance adoption with monetization.
The tariff hikes are also crucial for telcos to improve their RoCE and profitability from current levels. India already has the lowest $2 monthly mobile tariff globally as per ITU, giving room for price increases.
These will augment the fast-growing mobile sector revenues as 5G user base swells beyond 200 million by end-2024. Higher data usage and upselling opportunities for telcos exist.
By starting to charge premium rates for 5G in a phased manner, Airtel and Jio hope to capitalize on their co-leadership in next-gen 5G networks. For users, it may mean shelling out more to enjoy faster speeds and low latency.
