In a strategic move, Bharati Airtel and Reliance Jio are set to discontinue their unlimited 5G data plans in the latter half of 2024. Both telecom giants plan to raise tariffs by 5-10% compared to current 4G rates, aiming to bolster revenue growth. Having introduced 5G services in October 2022, the operators initially offered unlimited 5G services at existing 4G prices. However, as 5G adoption rises, the focus shifts to monetization and sustaining revenue growth.

With a combined 125 million 5G users, Airtel and Jio have been at the forefront of India’s 5G revolution. Anticipating over 200 million 5G users by end-2024, the telcos aim to navigate this shift in a manner that maximizes revenue potential.

As the era of unlimited 5G offers concludes, industry analysts suggest potential tariff increases of 5-10%, accompanied by 30-40% additional data to drive adoption and capture market share. The expected rise in mobile tariffs by at least 20% in the September quarter of 2024 aims to enhance Return on Capital Employed (RoCE).

Despite these adjustments, there is room for tariff increases in India, given that the current telecom service tariff stands as the lowest globally at $2 per month. The impending tariff adjustments mark a significant development since the last hike in November 2021, with Airtel anticipated to lead the tariff adjustments, followed by Vodafone Idea and Jio. This strategic realignment is projected to contribute to the growth of India’s mobile sector revenues in the coming years.

By : Kruthiga V S

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