Price of 4G Services Likely To Go Up By 30 Per Cent Before Arrival of 5G

The tariff of 4G can be increased before the start of 5G telecom services in the country.

Updated: August 3, 2022 10:34 PM IST

By India.com Business Desk | Edited by Tahir Qureshi

4G Services, 5G, 5G telecom services, CRISIL Ratings, Nomura, Goldman Sachs, Reliance Jio
Telecom companies will charge premium tariff on 5G

Price Of 4G Services Likely To Go Up: The tariff of 4G can be increased before the start of 5G telecom services in the country. CRISIL Ratings, Nomura, and Goldman Sachs expect companies to increase tariffs by 30% in 2022. After this, premium tariffs will be charged for 5G. Bids worth Rs 1.5 lakh crore were placed in the 5G spectrum auction that ended on Monday. Given the huge investment in the 5G spectrum, CRISIL Ratings expects companies to charge different rates for 5G services. According to CRISIL, the use of 5G services will depend on the premium over and above the 4G tariff. That’s why companies can increase tariffs for 4G services to ensure that people adopt 5G on a large scale.

Nomura Global Market Research also estimates that companies can charge up to 30% premium on tariffs of 1.5GB per day 4G plans.

Telecom companies will charge premium tariff on 5G

Nomura has said in a report, “Initially premium customers (those with smartphones above Rs 15,000) will subscribe to 5G services. In such a situation, we estimate that telecom companies will charge premium tariffs on 5G. On the other hand, Goldman Sachs has said in a note, ‘We have already estimated that by the end of 2022, the telecom companies will once again increase the tariff. In our opinion, this will prove to be the next step in the growth of earnings in this sector.’”

Reliance Jio in strongest position for 5G

Jio is the only operator in all 22 telecom circles to buy a 5G spectrum in the premium 700 MHz band. Due to this, Jio has taken an early lead in the 5G race. According to telecom experts, due to the low-frequency band, its signals can reach inside buildings. Hence it is suitable for indoor coverage. Its outdoor coverage is also great. A tower in the 700 MHz band can provide coverage up to 10 km.

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