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Airtel and Jio
The two major telecom providers, Reliance Jio and Bharti Airtel, plan to increase their prices for 5G by at least 5–10%, according to a report reviewed by ET, stated Jefferies. The analyst also predicted that the telecoms would discontinue their existing 5G data plan, which is unlimited. The expert predicts that the 5G offer would be removed in the second half of 2024. With the rate at which the telecoms are deploying 5G, they would have most of India covered by then. Keep in mind that the analyst is stating this rather than the telcos, thus nothing is certain.
It's important to note that while 5G adoption may rise, many consumers might decide they don't need to pay the extra money for 5G as they can receive enough speeds with 4G. The telecom companies are aware that consumers would only utilize 5G for mobile purposes. In general, not many individuals would be concerned about 5G if they worked from home or in an office because optical fiber broadband connections allow these types of buildings (both residential and commercial) to connect multiple devices.
The telcos may choose to reduce their 5G expenditures in favor of concentrating more on raising the cost of 4G plans in order to increase ARPU (average revenue per user). On 4G plans that cost more, 5G can still be available as a complimentary service. Other than that, telecoms' FWA (fixed wireless access) service is the only way they may profit directly from 5G users. Experts anticipate that the telecoms will reduce their 5G capital expenditure starting in FY25.
Reliance Industries' chairman and managing director, Mukesh Ambani, stated that Jio had finished the quickest 5G rollout in December 2023. But there are still a lot of places that 5G isn't yet available in. To encourage the adoption of 5G in India, low-cost 5G phones must be available in the offline retail market. In general, the decision by the telecoms to discontinue unlimited 5G in 2024 and replace it with more expensive 5G rates might not have been the smartest one. Rather, the emphasis need to be on raising 4G pricing in order to increase ARPU.
On October 1st, 2023, Prime Minister Narendra Modi announced the availability of 5G in India at the India Mobile Congress held in Delhi. It is anticipated that by the end of 2023, 75% of the population will have access to the fifth-generation cellular network, which is currently operational across the nation.
Considering that the 5G rollout in India is still in progress and that Reliance Jio and Bharti Airtel want to provide nationwide coverage at the earliest.
Speaking in front of Prime Minister Narendra Modi at the 10th Vibrant Gujarat Summit 2024, Mukesh Ambani recently declared, “Reliance Jio has successfully completed the world’s fastest rollout of 5G infrastructure.” Gujarat has complete 5G connectivity now, something that the majority of the globe does not yet have.”