Jio, Airtel considering 10 percent tariff hike for 5G services in India: report

Highlights
  • Separate plans for 5G connectivity are being contemplated by Jio and Airtel.
  • These plans might carry a price tag 5-10 percent higher than regular 4G plans.
  • These plans are expected to provide 30 percent more data than typical 4G plans.

Telecom operators Jio and Airtel took the forefront in rolling out 5G services in India. Both operators provide unlimited 5G data as part of their cellular plans, without imposing extra fees. This strategy was aimed at maximising 5G adoption among customers in the country. However, the ongoing availability of unlimited 5G services might see an end soon.

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Price hike of up to 10 percent on Jio, Airtel 5G plans

  • As per a report by the Economic Times, separate plans for 5G connectivity are being contemplated by Jio and Airtel.
  • These plans might carry a price tag 5-10 percent higher than regular 4G plans, as mentioned in the report.
  • Jio and Airtel are anticipated to unveil their 5G cellular plans in the second half of 2024, nearing the completion of the 5G rollout in the country.
  • The aim is to start recovering investments by increasing the average revenue per user (ARPU) through these new plans.
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  • Furthermore, these plans are expected to provide 30 percent more data than typical 4G plans, which usually offer 1.5GB to 3GB of data per day.
  • The higher bandwidth and speeds of 5G are likely to drive a significant increase in data consumption.
  • There are indications that existing 4G plans might undergo a price increase in 2024.

As per reports, the fastest 5G rollout globally, achieving 100 million users within a year, has been witnessed in India. However, the introduction of monetisation for this new service by Jio and Airtel has not commenced yet. Currently, both telecom giants include 5G as a complimentary offering in the majority of their regular plans.

Additionally, having provided free 5G data for nearly a year, Jio and Airtel have gained insights into the evolving usage patterns of their customers with 5G. This understanding will likely aid them in assessing the optimal amount of daily data to incorporate into their 5G plans in comparison to their 4G offerings.