Leading Indian telecom operators Reliance Jio, under the leadership of Akash Ambani, and its competitor Airtel, have unveiled a bold strategy to raise mobile tariffs by a significant margin in the coming years. These price adjustments, expected to occur in the latter half of 2024, aim to optimize the return on investment (ROI) of their cutting-edge 5G infrastructure while also covering the costs associated with customer acquisition.
Reliance Jio has solidified its position as one of India’s premier telecom operators, largely due to its affordable recharge plans. By offering cost-effective packages that encompass unlimited 5G data, unlimited calls, and even subscriptions to over-the-top (OTT) services, the company has amassed a loyal customer base. However, as the era of 5G services dawns upon us, industry experts anticipate that Reliance Jio will no longer provide unlimited 5G data plans.
Instead, analysts project that Reliance Jio will introduce a price increase of at least 5-10% for its 5G services in comparison to its current 4G offerings. Airtel, Jio’s key rival in the Indian telecom market, is also expected to follow suit and raise tariffs during the same period of time.
Amongst Indian telecom operators, Reliance Jio stands out for successfully implementing its 5G network with remarkable speed, positioning itself as a global leader in this field. Leveraging its extensive spectrum footprint, which spans across multiple bands such as 700MHz, 800MHz, 1800MHz, 3300MHz, and 26GHz, Jio has achieved comprehensive 5G coverage. This accomplishment has been made possible by its vast fiber network and proprietary technology platforms.
By utilizing a combination of low-band, mid-band, and mmWave spectrum, Jio possesses a strategic advantage that enables it to deploy standalone networks and deliver the true benefits of 5G technology. Focusing on both small and large enterprises, the company aims to provide innovative 5G-based business connectivity solutions.
The decision to raise mobile tariffs by Reliance Jio and Airtel is driven by the objective of fueling revenue growth and maximizing returns on their investments in state-of-the-art 5G infrastructure. While customers may need to adapt to the revised pricing, these increased tariffs have the potential to unlock new and exciting possibilities in the rapidly evolving Indian telecom landscape.
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