Airtel 5G Could Only Be Limited To Higher Tariff Plans

Now that the 5G spectrum auction is over, deployment is just a matter of time. By the end of the year, all major telecoms plan to roll out 5G in select locations across the nation. Following the Airtel’s CEO’s recent announcement that 5,000 towers will be used to roll out 5G in India this month, the vice-chairman of the company has provided some crucial information.

Akhil Gupta, the vice-chairman of Airtel, stated in an interview with mint that Airtel would not charge a premium for its 5G service but may provide it to customers of high-priced tariff plans. Gupta states that this will encourage people to switch to the faster network as data usage increases. As a result, Airtel will find it much simpler to quickly hit its higher average revenue per user (ARPU) milestone.

At the conclusion of Q1 FY22, Airtel’s ARPU was ₹183. Given that it currently has the highest ARPU in the sector, the company will easily reach the ₹200 milestones with another price rise and more costly 5G plans. Only by raising the tariff that has already been implemented, since pre-paid plan rates have climbed by 20–25% since November of last year, would this be possible. With the advent of 5G, carriers plan to increase ARPU to between ₹300 and ₹350, indicating that more pricing increases may soon be implemented.

Gupta went on to say that even though Chinese players helped Airtel’s growth in its early years by providing it with affordable equipment, the company will not be relying on any Chinese equipment maker for their 5G deployment. He added that when it came to national security, the law of the land must be upheld.