As per recent reports, Airtel and Reliance Jio, leading telecommunication operators in India, are preparing to modify their strategy regarding 5G services. After providing free 5G services for a year, the companies have decided to start charging for these services in the second half of 2024. This strategic shift aims to drive monetization and boost revenue growth in the long term.
Frequently Asked Questions (FAQ):
Q: What is the reason behind Airtel and Reliance Jio’s decision to charge for 5G services?
A: The main objective is to improve monetization and revenue growth for the companies.
Q: Will there be any changes in the 5G plans offered by Airtel and Reliance Jio?
A: Yes, both companies are expected to introduce new specialized 5G plans while discontinuing unlimited 5G data packages. The prices of these new plans are estimated to be 5-10% higher than their 4G counterparts.
Q: Will mobile phone charges also increase as a result of this change?
A: Yes, mobile phone charges may increase by at least 20% in the third quarter of 2024. This is necessary to ensure a positive Return on Capital Employed (RoCE) due to substantial investments in 5G technology and rising customer acquisition costs.
Q: Will customers still receive similar data benefits with the new 5G plans?
A: Despite the higher prices, Airtel and Reliance Jio may offer their customers 30-40% more data within these specialized plans. This strategy aims to promote the adoption of 5G technology and gain a larger market share, potentially impacting competitors such as Vodafone-Idea (Vi).
Q: What was Airtel CEO Gopal Vittal’s earlier stance on additional charges for 5G services?
A: Previously, Gopal Vittal ruled out imposing additional charges for 5G services in the near future. However, he did mention the possibility of raising mobile phone fees to increase the Average Revenue Per User (ARPU) from the current level of about 200 Indian rupees to around 250 Indian rupees.
Q: How many 5G service users do Airtel and Reliance Jio have currently?
A: Together, Airtel and Reliance Jio have over 125 million 5G service users. The overall number of 5G users in India is anticipated to reach approximately 200 million by the end of 2024.
This industry shift towards charging for 5G services signifies a more mature stage for the telecommunications sector in India. Service providers are now focusing on long-term monetization and growth opportunities, indicating a positive growth trajectory for the industry.
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The source of the article is from the blog japan-pc.jp