Airtel, Jio, Vi Can Increase Data, Voice Charges From This Month As Per Experts

There will be more tariff hikes in the telecom sector soon as telcos pour in significant money into the rollout of 5G services.

Airtel, Jio, Vi Can Increase Data, Voice Charges From This Month As Per Experts; Tariff Will Be Hiked Frequently?

Coming soon

Analysts expect a hike in the coming quarter starting January 1.

The upcoming hikes in FYQ4 and higher data consumption following 5G rollout will serve to boost average revenue per user (ARPU) further.

Jio

The hikes will also likely increase in frequency, with Jio more willing to participate since it has to focus on its profitability and not just subscriber additions.

This will become priority now as it prepares for its potential IPO in the next 1-2 years and given the high capex for 5G rollout.

Airtel

Airtel could gain significantly given the loyal and premium quality of its subscribers, ensuring that tariff hikes flow through to ARPUs.

The telco said on Wednesday that its 5G user base had crossed 1 million.

It has been expediting the 5G rollout to acquire early adopters and is targeting coverage in 5,000 towns/cities by March 2024.

The rollout will require higher capex for next 12-18 months.

Vodafone Idea

The industry in general has been planning to raise tariffs to improve their ARPUs.

For Vodafone Idea in particular tariff revision is essential to its survival.

Airtel seizes opportunity

Airtel added 300,000 postpaid users in the July-September period.

Managing director Gopal Vittal said its 5G services along with the financial challenges of a rival aka Vodafone Idea gives it an opportunity to grow market share.

Airtel has been following an optimal 5G strategy by betting on the non-standalone (NSA) 5G version.

NSA 5G

This makes sense considering 5G NSA can be rolled out much faster and investment is lower since it uses the existing 4G infrastructure for the coverage layer.

Another point to consider is the very few use cases at present that require network splicing and sub-millisecond latency offered by standalone (SA) 5G.

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