According to experts, telecom providers such as Airtel and Jio may initially charge customers extra for 5G data plans. In comparison to 4G rates in the nation, the next generation of the cellular network (5G) might initially cost more. As predicted by leading brokerage companies and industry analysts, this increased pricing may serve as the catalyst for the next wave of average revenue per user (ARPU) growth.
Telecom firms are rushing in to take part in the next 5G spectrum auction as the government has promised that the roll-out will take place within this year. Jio, Airtel, and Vi are reported to compete in the auction, with the Adani group being the surprise participant.
Pricier 5G Plans Compared To 4G
Industry experts predict that the first 5G offering will likely be more expensive than 4G rates nationwide. As one may recall, this is a significant difference from what took place during the switch from 3G to 4G. Analysts predict a minimum 10 to 12 percent premium for 5G over the current 4G plans.
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The initial increased rates can be attributed to the start of a fresh wave of rising average revenue per user (ARPU). Telcos want to cater to customers who own mid-range and premium smartphones, as they are likely to be easier to convince to switch to 5G services. Since 5G will initially only be available to a select group of customers, telecom providers will have the perfect chance to profit handsomely from these early adopters.
Long-term 5G plan costs are likely going to be comparable to 4G rates, making it the ideal period for widespread 5G adoption.
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