Airtel 5G plans price to be similar to 4G plans

Airtel 5G is rolling out in eight Indian cities, though we haven't heard about the carrier's tariffs yet. Before that, the company told a publication that it is still finalizing 5G plans, and details will be released in the "coming days." It is also reported that Airtel 5G will not be too expensive compared to 4G plans, although the company hopes this will change. However, it may not be possible as Airtel's most significant domestic rival Jio has promised to keep 5G prices more affordable in India.

A senior Airtel executive told The Economic Times that higher 5G tariffs at this stage would not increase average revenue per user (ARPU) due to the low subscriber base of 5G phones. He even talked about Thailand, where 5G adoption has been low due to high fees. This was also noted in a Thai Enquirer article stating that 5G adoption in Thailand would take time due to a small 5G phone user base, high fees, and fewer use cases.

The executive hopes they will not be able to set rates that provide a reasonable return. The publication cites the executive notes of the company, "Today, the return on investment is about 7 per cent for the industry. That needs to go up and will only come through ARPU. The decision of what we should price on 5G is not going to change the ARPU equation. That has to be through the overall tariff hikes."

When Jio launched its 4G in India, rivals like Airtel and Vodafone were forced to bundle benefits like unlimited calls and data. This model was maintained for a few years, but in December last year, all mobile operators uniformly raised the prices of their 4G plans to increase ARPU. As a result, many analysts predict that another rally will soon be around the corner.

Meanwhile, Jio's 5G services are also being rolled out in four cities on a trial basis. Both Airtel and Jio hope to cover major circles early next year. Vi, on the other hand, has yet to offer details.