Mobile users might be in for a big surprise soon. As per a report from ET, Reliance Jio and Airtel might stop offering plans that give unlimited 5G data for their top-tier customers.
Analysts suggest that, to make more money, these companies might increase the cost of 5G services by 5 to 10 percent compared to 4G, starting in the second half of this year.
Experts in the industry think that both companies are considering a 20% hike in mobile tariffs from September this year.
This move is aimed at improving their RoCE amid substantial investments and high expenses in gaining new customers for 5G.
Getting ready for making money, Airtel and Jio have been providing 5G services to users at the same rates as 4G for almost a year.
They have been encouraging users to switch to the new wireless broadband service by offering unlimited 5G data.
However, analysts speculate that this approach might change soon as Jio and Airtel gear up to launch their 5G services nationwide, shifting their focus towards making profits.
As they turn their attention to monetization and complete 5G coverage, Jefferies, in one of its research notes, suggests that Jio and Airtel might stop offering unlimited 5G data to high ARPU data customers.
The note also mentions that these companies might introduce their 5G plans in the latter half of this year, expected to be 5 to 10 percent pricier than 4G plans.
To attract users, Airtel and Jio could offer 30 to 40 percent more data in their higher-priced 5G plans.
This strategy aims to quickly increase the number of users opting for this service.
In November last year, Airtel Managing Director Gopal Vittal had mentioned that the company could lead in raising the overall mobile tariff at the right time to boost the monthly average revenue per user from Rs 200 to Rs 250.
