Airtel and Reliance Jio Expected to End Unlimited 5G Data Offers, Introduce Charges

Airtel and Reliance Jio, pioneers in rolling out 5G services in India, are reportedly planning to discontinue their unlimited 5G data offerings. Both telecom giants have been providing 5G connectivity at the existing 4G rates, along with unlimited data plans, as an incentive for subscribers to upgrade to the advanced wireless broadband service. However, experts suggest that the companies might end this practice and introduce charges for 5G services, estimating an increase of 5-10 percent over existing 4G plans. This shift is anticipated to happen in the second half of 2024, aiming to stimulate monetization and revenue growth as 5G adoption levels rise.

Industry analysts predict that Airtel and Jio may raise mobile charges by at least 20 percent in the September quarter of 2024. This adjustment aims to boost the Return on Capital Employed (RoCE) for the telecom firms, considering the substantial investments in 5G infrastructure and the associated costs of customer acquisition. While the purported 5G plans are expected to be costlier than their 4G counterparts, the providers might include 30-40 percent more data in these bundles to encourage usage. This strategic move could help them enhance market share, especially as Vodafone Idea (Vi), another major telecom player, is yet to introduce 5G services in the country.