Heading: Telecom Operators in India Set to End Unlimited 5G Data Plans, Increase Tariffs in 2024

In a significant development for 5G users in India, both Bharati Airtel and Reliance Jio are set to withdraw their unlimited 5G data plans in the latter half of 2024. According to a report in the Economic Times, the two major telecom operators will start charging at least 5-10% more than the current 4G tariff in an effort to drive monetization and boost revenue growth.

Since launching their 5G services in October 2022, both companies have been offering unlimited 5G services at existing 4G tariffs. However, as the adoption of 5G increases, they are now planning to roll out 5G services across the country and focus on monetization strategies.

With over 125 million 5G users between them, Bharati Airtel and Reliance Jio have been at the forefront of the 5G revolution in India. The number of 5G users in the country is expected to exceed 200 million by the end of 2024.

After the unlimited 5G offer ends, the companies are likely to increase their 5G plans by 5-10% compared to current 4G plans while offering 30-40% additional data to improve adoption and increase market share. The overall mobile tariffs may also see an increase of at least 20% in the September quarter of 2024 to improve return on capital employed.

Despite the potential tariff hikes, the telecom service tariff in India is still the lowest in the world at $2 per month, leaving room for telcos to raise prices. The last tariff hike by Jio, Vi, and Airtel was in November 2021, and industry analysts believe that the upcoming price increases will lead to a growth in India’s mobile sector revenues in 2024.

According to CLSA estimates cited by the Economic Times, India’s mobile sector revenue is expected to grow from an estimated ₹2,46,800 crore in FY24 to ₹2,77,300 crore and ₹3,07,800 crore in FY25 and FY26, respectively.

Overall, the upcoming changes in 5G data plans and tariffs are poised to reshape the telecom landscape in India and drive growth in the sector.