The latest information from a report by the Economic Times suggests that both Reliance Jio and Bharti Airtel will soon discontinue their free unlimited 5G data plans and begin charging consumers for the service. This change is expected to take effect in the second half of 2024. The new 5G plans are anticipated to be more expensive than their 4G counterparts and are unlikely to offer unlimited data. The companies may introduce 5G-specific plans with 30 to 40 per cent more data than their 4G plans, which could help them increase their Average Revenue Per User (ARPU) to around Rs.250 from the current Rs. 200.
The commercial rollout of 5G services across the country is expected to lead to the end of unlimited 5G data offerings from both Airtel and Jio. This, along with potential tariff hikes by up to 20 per cent, is projected to improve their monetization and increase their revenue. The current base of 125 million 5G subscribers in India is expected to exceed 200 million by the end of this year. Additionally, it’s worth noting that the companies last increased their tariffs in November 2021, with another tariff hike likely to occur in the latter half of 2024.
These changes in 5G offerings and tariffs are part of the companies’ strategies to adapt to the commercial 5G rollout and increase their revenue in the competitive telecommunications market in India.
1. ✍️Will 5G plans be more expensive than 4G plans?✍️
Yes, according to the report, the new 5G plans are expected to be more expensive than their 4G counterparts.
2. ✍️Will the new 5G plans have unlimited data?✍️
It is unlikely that the new 5G plans will offer unlimited data, based on the information provided.
3. ✍️Are there any predictions for the increase in 5G subscribers in India?✍️
Experts predict that the 5G subscribers in India could exceed 200 million by the end of this year, a significant increase from the current base of 125 million.
4. ✍️When did the companies last hike their tariffs, and when is the next potential tariff hike?✍️
The companies last hiked their tariffs in November 2021, and another tariff hike is likely to take place in the latter half of 2024.
The shift from free unlimited 5G data to paid plans by Airtel and Jio is a significant development in the Indian telecommunications industry. With the commercial rollout of 5G services and the projected increase in 5G subscribers, the companies are making strategic moves to align their offerings and tariffs with the evolving market dynamics.
The proposed changes are a reflection of the competitive landscape in the industry and the companies’ efforts to capitalize on the growing demand for 5G services in India. As the transition unfolds, consumers can expect new 5G-specific plans with enhanced data offerings, although these plans are likely to come at a higher cost than existing 4G plans.
Overall, the upcoming changes in 5G plans and tariffs are a response to the evolving market conditions and a step toward driving revenue growth for Airtel and Jio in the 5G era.