5G To Cost 10% More on Jio, Airtel

Reliance Jio and Bharti Airtel, India's leading telecom operators, are likely to end their unlimited 5G data plans for premium customers and raise 5G service charges by at least 5-10% compared to 4G starting in the second half of 2024, according to analysts. This move aims to boost revenue growth and drive monetization after nearly a year of offering 5G at 4G rates to encourage adoption.

According to a report of ET, Analysts at Jefferies, a global brokerage firm, predict this shift in strategy as both Jio and Airtel near nationwide 5G coverage. "With rising focus on monetization and 5G coverage nearing completion, we believe the telcos may stop offering unlimited 5G data to their higher-ARPU data customers and announce 5G-specific plans towards 2HCY24," their research note stated.

While absolute prices for 5G plans might be 5-10% higher than 4G, Jefferies expects the operators to bundle 30-40% more data to incentivize adoption and gain market share against cash-strapped competitor Vodafone Idea, which is yet to launch 5G services.

However, Airtel Managing Director Gopal Vittal previously ruled out immediate price hikes for 5G, citing a lack of widespread applications fully utilizing the technology's potential. He did, however, emphasize Airtel's readiness to lead a broader mobile tariff increase at the opportune moment to raise average revenue per user (ARPU) from the current Rs 200 to around Rs 250.