Indian telcos urged to end free unlimited 5G offers, Motilal Oswal

Brokerage house Motilal Oswal has called on Indian telecom operators to phase out free unlimited 5G-backed data offers and begin actively monetising surging data consumption on next‑generation networks. The firm noted that leading players currently bundle unlimited 5G usage at no additional cost with higher‑value prepaid plans, typically those offering around 2 GB of daily data or more.

According to the brokerage, this promotional approach has helped accelerate 5G adoption, but it is now constraining revenue growth and delaying returns on heavy spectrum and network investments. Motilal Oswal’s analysts pointed out that a large share of subscribers at major operators has already migrated to 5G, making continued free usage economically unsustainable.

Its report argues that operators should shift to a more structured pricing architecture, using differentiated 5G plans, higher tariffs or experience‑based tiers to drive average revenue per user (ARPU) higher. Industry observers have similarly indicated that unlimited 5G promotions are likely to give way to paid 5G offerings as coverage matures and the focus turns from subscriber acquisition to monetisation.

Regulator-led scrutiny of “unlimited” data plans has also intensified in recent years, reinforcing the push toward clearer fair-usage norms and sustainable pricing models.

CT Bureau