India saw the launch of 5G services in October 2022, with top telecom providers Reliance Jio and Airtel being the first to offer these services to their clients. They have more than 125 million 5G subscribers between them.
The big telecom companies have been charging the same prices for 5G connectivity as they do for 4G, and some of their plans include limitless 5G data. It is presently anticipated, nevertheless, that these businesses will soon stop providing limitless 5G service and Airtel to hike 5G data price over that of 4G plans.
Airtel To Hike 5G Data Price: Speculations on Changes in 5G Pricing Plans (2024)
To encourage revenue development and monetization, analysts anticipate that starting in the latter half of 2024, Reliance Jio and Bharti Airtel to hike 5G data price and start charging 5–10 percent more for 5G services than 4G. This information was reported in the Economic Times.
Shift in Strategy for 5G Adoption (Jio and Airtel)
For nearly a year, Jio and Airtel have been enticing existing users to migrate to the next-generation wireless internet service by providing 5G connections at 4G rates and unlimited data plans.
However, as Jio and Airtel get ready to roll out 5G services across the nation and Reliance Jio and Bharti Airtel to hike 5G data price, this strategy is expected to change soon. It is interesting that India is expected to have more than 200 million 5G customers by the end of 2024.
Anticipated Mobile Charge Hike and Business Strategies (2024)
The report goes on to say that industry analysts predict the two telecom companies will raise mobile fees by a minimum of 20 percent in the third quarter of 2024 in order to increase their return on capital employed (RoCE), in addition to addressing the higher expenses associated with customer acquisition and 5G investments.
Strategies for Encouraging 5G Usage (Cost vs. Data)
The projected 5G plans from Jio and Airtel are expected to cost 5–10 percent more than their 4G counterparts, but in order to encourage usage, the network providers may include 30–40 percent more data in these bundles.
This could further expand their market share because Vodafone Idea (Vi), another significant telecom provider, has not yet launched 5G services in the country.
Surge in UPI Transactions in 2023
Meanwhile, in 2023, the Unified Payments Interface (UPI) handled over 100 billion transactions—more precisely, nearly 118 billion. Compared to the same time last year, this represented a 60% rise. To put things in perspective, in 2022 there were more than 74 billion UPI transactions.
Conclusion
Reliance Jio and Airtel led the way, adding over 125 million consumers to their 5G services in 2022—a significant milestone. There will soon be changes to the original deal, which offered unlimited data for 5G at 4G costs.
Rumor has it that in the second half of 2024, Reliance Jio and Bharti Airtel to hike 5G data price. Estimates suggest that by 2024, there would be a noteworthy 200 million 5G users, with Jio and Airtel focusing on a statewide 5G rollout.
There could be a 20% increase in mobile prices in 2024 to fund the construction of 5G infrastructure and reduce client acquisition costs. A major shift in India’s technological landscape is being heralded by the massive increase of UPI transactions in 2023, which exceeded 100 billion.