5G in India: Airtel Likely to Offer 5G Services on Higher Plans

The Indian government sold 5G spectrum worth over Red 1.50 lakh crore, led by Reliance Jio, Airtel, Vodafone Idea and a unit of Adani Group.

Published date india.com Published: August 22, 2022 7:09 AM IST
5G in India: Airtel Likely to Offer 5G Services on Higher Plans

New Delhi: Telecom operator Bharti Airtel is likely to 5G services in the country with high tariff plans, said Akhil Gupta, vice-chairman of parent Bharti Enterprises during a recent interview. Gupta said that even though the telecom major may not charge a premium for the superfast network, it might launch high-price plans, and prompt users, to upgrade to the upcoming network as data consumption rises.

Speaking to the Mint, Gupta said, “My feeling is that with 5G, penetration will increase so quickly that it will be like any other offering. Anybody who has a 5G handset will get 5G. They will consume more and automatically go to a higher tariff plan. This would result in higher revenues,” He added, “I really don’t think there is going to be something like a pure premium 5G. At best we could start giving 5G on slightly higher plans, but let the operating people decide what they want to do.”

He further added that 5G, much like older and even future technologies, will be supply-led, with users consuming more data with faster internet being made available to them, contributing to higher revenue for telcos.

Stating that tariff plans in India are abysmally low compared with global rates, Gupta said, “If you keep supplying, demand will keep coming. When you provide more capacity and faster speeds, the consumption is bound to grow. It is human nature that if you get faster internet, you will consume more data.” “Without a doubt, tariffs have to go up,” he added.

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Earlier last week, Bharti Airtel had paid Rs 8,312.4 crore to the Department of Telecom (DoT) towards dues for spectrum acquired in the recently concluded 5G auctions. Airtel paid four years of 2022 5G spectrum dues upfront.

According to the company, the upfront payment, coupled with the moratorium on spectrum dues and AGR-related payments for four years, will free up future cash flows and allow Airtel to dedicate resources to single-mindedly concentrate on the 5G roll out.

The Indian government sold 5G spectrum worth over Red 1.50 lakh crore, led by Reliance Jio, Airtel, Vodafone Idea and a unit of Adani Group.

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