Will keep 5G services affordable, Center says

The cabinet will ensure that the 5G plans remain affordable for the public, according to the minister.

The government has also introduced “The Indian Telegraph Right of Way (Amendment) Rules, 2022” along with the launch of the 5G Right of Work (RoW) application form on the GatiShakti Sanchar portal.

The Indian Telegraph Right of Way (Amendment) Rules, 2022, will help industry accelerate the spread of digital infrastructure, deployment of small cells, fiber optics and street furniture.

Provision for small cells, power poles, access to street furniture, etc. has been introduced for the easy and smooth roll-out of 5G networks.

The 5G services would be rolled out in phases and in the first phase, 13 cities will receive the 5G internet services.

The cities are Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Gandhinagar, gurugramHyderabad, Jamnagar, Kolkata, Lucknow, Mumbai and Pune.

Like 3G and 4G, telcos will soon be announcing special 5G pricing plans, and according to industry experts, consumers may be paying more to access the 5G services on their devices.

Reliance Jio, Airtel and Vodafone Idea are currently tight-lipped, discussing internally whether they will opt for a substantial or modest price hike for end users, along with discussions about offering lucrative data bundling offers with smartphone makers when the 5G rollout hits a snag. better shape, according to sources.

However, the tariff plans will decline as usage increases, and more people are embracing 5G networks, especially in Metros where the first demand will come.

An immediate tariff war with the launch of 5G is unlikely, but “will be competitive as India remains a price-conscious market”.

A recent report from Nomura Global Markets Research estimated that telecom service providers would have two options: either a modest 4 percent incremental rate increase on their total subscriber base or a 30 percent premium over 1.5GB per day 4G subscriptions.

Historically, Indian telecom companies have refrained from charging a premium for 4G plans (versus 2G/3G data plans). With a potentially higher speed being offered and likely initial adoption from premium customers (smartphones above Rs 15,000), there is a potential for telecom companies to charge a premium for 5G (vs 4G), in our view,” Nomura said in his report. ARPU (average unit revenue) is rising for the telecom companies,” it added.

Another report from Goldman Sachs Equity Research noted that the 5G rollout has not led to a “meaningful rise in capex for telecom companies worldwide, and envisions a similar trend in India”.

Airtel CTO Randeep Sekhon recently said in reports that there is not a big difference between 5G and 4G tariffs worldwide.

“We expect the 5G plans in India to be comparable to the 4G tariffs,” he said.

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