Jio and Airtel, the leading players in India’s 5G rollout, have been providing unlimited 5G data at no additional cost as part of their regular cellular plans to encourage widespread adoption of 5G across the country. However, this era of complimentary unlimited 5G services may soon change. According to a report by the Economic Times, both Jio and Airtel are contemplating the introduction of separate plans for 5G connectivity, with potential pricing set to be 5-10% higher than current 4G plans.
All About Jio and Airtel Ending Free 5G Offerings
India has experienced one of the swiftest 5G rollouts globally, reaching 100 million users within a year. Despite this, Jio and Airtel have not yet monetized the service, continuing to offer 5G as a complimentary inclusion in most of their regular plans.
Industry experts cited in the ET report suggest that Jio and Airtel are likely to launch dedicated 5G plans in the latter half of 2024. With the imminent completion of the 5G rollout, both companies are gearing up to recoup their investments by increasing the average revenue per user (ARPU). The proposed 5G plans might carry a premium of up to 10% compared to existing plans, while also offering approximately 30% more data than current 4G plans, which typically provide 1.5GB to 3GB of data per day.
The higher bandwidth and speeds of 5G are expected to drive a significant increase in data consumption. Having provided free 5G data for almost a year, Jio and Airtel now have insights into the evolving usage patterns of their customers with 5G, enabling them to determine the optimal daily data limits for their 5G plans compared to 4G offerings.
The report also suggests that existing 4G plans may see a price hike in 2024. Indian telecom operators have refrained from increasing rates for nearly two years, and the potential introduction of distinct 5G plans might coincide with a revision in 4G charges.
While the conclusion of free 5G services may disappoint some users in India, it is anticipated to bring about optimization in 5G consumption, ultimately improving speeds and quality over time. This situation is reminiscent of Jio’s entry in 2016, where free 4G distribution initially led to a decline in speeds, gradually improving as more users transitioned to paid plans.
