Reliance Jio and Airtel 5G prices may be affordable for now but expected to increase after wider rollout
Reliance Jioand Airtelare expected to announce their 5G tariffs in the coming days.
- The companies are expected to offer 5G services at an affordable price.
- Airtel’s 5G services have been launched in 8 cities, and
Jiois expected to launch its services around Diwali.
AdvertisementIndia’s top telcos, Reliance Jio and Airtel, announced the launch of 5G services in India on October 1 at the India Mobile Congress (IMC). While Airtel’s 5G services have already been launched in eight cities, Mukesh Ambani-led Reliance Jio is expected to begin its 5G services around Diwali.
If you are using a 5G smartphone and have an Airtel or Jio SIM, one of the first things that may come to your mind is what will be the cost of 5G or how much you will have to pay for 5G.
Airtel and Jio are yet to announce the 5G tariffs in the country. However, the telcos are expected to initially offer 5G at an affordable price.
Airtel 5G prices
According to a report by Economic Times, Airtel is expected to announce the 5G tariffs in the coming days. Still, it is expected to keep the price low as less than 10% of users own a 5G smartphone, and high prices may make adoption difficult.
"Today, only 8-9% of phones are 5G ready. So, whatever pricing you do for 5G will not determine the overall arc for the industry. There will not be any return on increased tariffs if the number of devices remains low. "Suppose you take a 13% increase in tariffs, and the uptake is really low, revenues are still zero, right?” an executive familiar with the matter told ET.
The executive also mentioned a need to increase the average revenue per user (ARPU), which can only be done through a tariff hike. Reliance Jio, Airtel and Vodafone Idea increased the tariffs by up to 25% in November 2021.
If a tariff hike is announced, all three telcos will probably be announced at once.
"That has to increase, but it's a competitive industry. So, we can't do it (just by ourselves). Suppose we do it, and others don't follow, then we will lose. So, we have to wait and watch and see when the timing is right," the executive added.
So, while we expect the initial prices to be low, the telcos may increase the prices once the services are launched across the country.
Reliance Jio 5G prices
Like Airtel, Jio is yet to announce its 5G tariffs. However, a company executive in an interaction with ET confirmed that its plans would be affordable.
"We will always remain affordable. This is Jio's lifetime stand and will offer more value to customers,” a Jio executive told ET.
The executive added that customers would not be required to purchase a new SIM to use its 5G services.
"There is no need to take service separately, and no SIM change is required for consumers, and by providing an option, they will be automatically upgraded to 5G,” the executive added.
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