5G services were introduced in India in October 2022, with Reliance Jio and Airtel leading the way. These telecom giants have garnered over 125 million 5G subscribers, providing 5G connectivity at the existing 4G rates and featuring unlimited 5G data in select plans. However, industry experts now anticipate a shift in strategy as both companies are likely to discontinue their unlimited 5G offerings and increase charges for 5G plans compared to their 4G counterparts.
According to an Economic Times report, analysts suggest that Reliance Jio and Bharti Airtel will implement these changes in the second half of 2024 to drive monetization and revenue growth. The initial approach of offering 5G at 4G rates, coupled with unlimited data, aimed at enticing existing subscribers to upgrade, but as the nationwide rollout of 5G progresses, the focus is shifting towards increased monetization with rising adoption levels. Projections indicate that the number of 5G users in India will surpass 200 million by the end of 2024.
Industry experts anticipate a mobile charge increase of at least 20 percent by Airtel and Jio in the September quarter of 2024. This adjustment aims to enhance Return on Capital Employed (RoCE) while addressing the substantial investments in 5G infrastructure and the associated costs of acquiring new customers. Although the proposed 5G plans are expected to be 5-10 percent pricier than their 4G counterparts, telecom providers may include 30-40 percent more data in these packages to encourage usage and bolster their market share, especially with Vodafone Idea (Vi) yet to launch 5G services in the country.
