Analysts predict that Reliance Jio and Bharti Airtel, the pioneers of 5G services in India, will change their pricing strategy in the coming months. Both telecommunications companies intend to end unlimited access to 5G data and introduce higher fees for these services compared to current 4G plans. The aim of this move is to generate greater profits and revenue growth.
Since October 2022, Reliance Jio and Airtel have been offering 5G connections at the same rates as their 4G services, along with unlimited data access. This strategy was meant to encourage existing subscribers to switch to the next-generation mobile broadband services. However, with the upcoming nationwide rollout of 5G services and the increasing level of adoption, it is expected that the companies will change their approach and focus on generating higher revenues.
Industry experts predict that the new 5G plans of Jio and Airtel could be 5 to 10 percent more expensive than their current 4G offerings. However, to promote service usage and improve market share, telecommunications operators may include 30 to 40 percent more data in these packages. This is significant as Vodafone Idea (Vi), another major telecom operator, has not yet introduced its 5G services in the country.
Furthermore, to meet the investments in 5G infrastructure and the growing costs of acquiring customers, Jio and Airtel are likely to increase mobile phone charges by at least 20 percent in the third quarter of 2024. This strategy aims to improve return on invested capital (RoCE) and ensure the sustainable development of their 5G-related ventures.
As the Indian market introduces 5G, the number of 5G users in the country is expected to exceed 200 million by the end of 2024. Reliance Jio and Bharti Airtel are determined to remain competitive and capitalize on this growing market, even if it means changing their pricing strategies.
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