Airtel and Jio Set to Revise 5G Plans: Brace for Changes in the Second Half of 2024

Airtel and Jio, the leading players in India's telecommunications sector, have been the go-to choices for subscribers seeking unlimited 5G data. However, a recent report from the Economic Times suggests a significant change on the horizon. Both telecom giants are contemplating the withdrawal of their unlimited 5G plans in the second half of 2024, accompanied by a potential tariff hike of five to ten percent.

Analysts speculate that this strategic shift aims at boosting monetization and revenue growth. Airtel and Jio are reportedly exploring ways to enhance Return on Capital Employed (RoCE) by at least 20%. This move is seen as an effort to offset the higher costs associated with customer acquisition and substantial investments in 5G technology.

Currently, neither Airtel nor Jio provides standalone 5G plans, a scenario expected to change in the near future. These upcoming plans are anticipated to be relatively expensive compared to their 4G counterparts. However, they are also expected to offer more generous data caps, potentially exceeding 30 to 40% compared to existing 4G plans.

Airtel, with a monthly Average Revenue Per User (ARPU) of Rs 200, is contemplating an increase to Rs 250. The push for higher ARPU aligns with the broader industry trend of enhancing profitability. The 5G userbase in the country has already surpassed 125 million, and both Airtel and Jio aim to propel this figure to around 200 million in the coming months.

Vi, another major player in the telecom market, is expected to join the 5G race, planning launches in select circles. Meanwhile, there is currently no information on the 5G network launch from state-owned BSNL, which recently initiated the rollout of its 4G network in various markets.

The move towards revising 5G plans is not unique to India's telecom landscape. Globally, telecom operators are realigning their strategies to balance the high costs of 5G infrastructure and spectrum acquisition. This shift is seen as a necessary step to ensure the long-term sustainability and growth of the telecommunications industry.

In conclusion, the impending changes in 5G plans from Airtel and Jio signal a transformative period for India's telecom subscribers. As the industry adapts to the evolving landscape, users can expect adjustments in pricing structures and data offerings. Stay tuned as the second half of 2024 unfolds, bringing with it a new era for 5G connectivity in the country.