The telecom companies are going to put an end to Unlimited 5G Services soon. The company has been giving unlimited 5G data to its consumers for free since its launch in October 2022. The 5G services have been rolled out in the majority of parts of the country and looking to stop the unlimited services to its users as the adoption has become more than expected.
This article is about the rollout of 5G services with paid subscription plans and charges.
What you are gonna learn in this article
Paid 5G Services To Rollout:
The two telecom Giant Bharati Airtel and Jio have been the most successful in launching their 5G services across the nation. The companies have offered unlimited 5G data services to their users since its launch however these companies are going to stop the unlimited free 5G data services by the second half of 2024 as per reports.
The companies are going to increase the charge by 5 – 10% with an additional 30% – 40% data to the same existing plans. In simple words, the duration of the plans will be the same but the charge and data are increased here. There are mainly two specific reasons for this, one is to boost the revenue and the other is to increase the user base.
Demand Of 5G:
The demand for 5G data led to the establishment of the 5G network by the telecom companies and both companies already have 125 million 5G users. It is expected that the 5G users are going to exceed 200 million users by the end of 2024.
Conversion of telecom networks from 4G to 5G costs are huge due to the purchase of 5G spectrum from the government to provide the services. The companies have bought the spectrum at a high price due to the immediate demand for 5G services.
The telecom companies have been working to roll out 5G services across the nation since its launch due to which the 5G services have been given for free. This event tests the capability of 5G services to work efficiently without any interruptions once its huge user base becomes active for several years.
5G Plan Charges:
Once the rollout completes the telecom companies are going to charge for 5g services while the 4G services will not be stopped until further notice from the companies. The companies are going to charge for the establishment of 5G services (Return on capital employed) which is huge for the companies and also for the cost of data that users consume.
This will be reflected in the increase in data plans of the companies. The reports claim that AIRTEL is going to charge first with an increase in service charges, VI (Vodafone idea), and JIO to implement next. The reports claim only a 5 – 10% increase but the companies have a chance to increase more than 10% stating 5G services. Indian companies are charging very low ($2 per month) when compared with other nations for data plans now, which have chances to increase further as per ET.
The data plans have not been hiked since November 2021 which has increased by 19% – 25% in the last hike however reports added that mobile plan charges will at least increase by 20% by September 2024 irrespective of the type of data services. Through this, the revenue of the companies will be boosted.
Growth Of Telecom Sector:
India’s mobile sector revenue is estimated to grow by 31,500 crores. The companies reported a revenue of 2,46,800 crores in FY24 and by addition of the estimated growth, the revenue stands at 2,77,300 crores by FY25. This could even grow by another 30,500 crores by the end of FY26 if the demand remains certain.
Jio, Airtel, VI Companies User Base-
- Jio – 44.92 Crore
- Airtel – 37.77 Crore
- VI – 22.75 Crore
Respectively where Jio added 34.7 lakh subscribers and Airtel added 13.2 lakh subscribers while VI lost 7.5 lakh to its user base in September month last year.
This shows the increase in demand for data services along with subscribers asking for fast data which can be seen in the type of network. Overall estimation claims there will be a huge demand for 5G data services in the coming years.
Conclusion:
The user base of VI is low when compared with Airtel and Jio and still it is yet to roll out 5G services all over the country which might impact its user base to drop out of the network in search of 5G services. Airtel and Jio have competed to increase their user base since the launch of Jio on 5th September 2016 and have become the major telecom companies now with their strategic moves to adopt huge data services and obtain crores of active users. However, the competition is going to increase further with the rollout of paid 5G services.
Subscribe to our Newsletter for more!