The race for 5G dominance in India has taken an interesting turn as both Jio and Airtel reportedly consider introducing separate tariff plans for their 5G services. This marks a departure from the current strategy of providing unlimited 5G data within existing cellular plans.
Key Points:
Shift to 5G Plans: Jio and Airtel are reportedly considering the introduction of dedicated tariff plans for their 5G services, moving away from the current strategy of offering unlimited 5G data within existing plans.
Price Hike Anticipation: The proposed 5G plans may come with a 5-10% price increase compared to regular 4G plans, signaling a shift towards recovering investments and increasing the Average Revenue Per User (ARPU).
More Data for 5G: These dedicated 5G plans are expected to provide 30% more data than typical 4G plans, leveraging the higher bandwidth and speeds of 5G technology.
Rollout Timing: Jio and Airtel are likely to unveil their 5G plans in the second half of 2024, coinciding with the anticipated completion of the 5G rollout in India.
Price Hike Details:
Reports suggest that the price hike for the dedicated 5G plans could range from 5-10% above the cost of regular 4G plans. This adjustment is seen as a strategic move to recover investments made in deploying 5G infrastructure and to boost the ARPU for telecom operators.
Conclusion:
The consideration of a tariff hike for 5G services by Jio and Airtel marks a significant shift in strategy as the industry moves towards monetizing the new technology. While this move is expected to increase costs for consumers, it also reflects the evolving dynamics of the telecom sector, striving to balance investments, consumer expectations, and the need for sustainable revenue growth in the era of advanced connectivity. The timing of the rollout and the insights gained from a year of free 5G services will play crucial roles in shaping the success and acceptance of these new tariff plans.
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