Will the telcos increase prices as they launch 5G?

The industry is abuzz with how the telcos will handle tariffs once 5G services are launched. The telcos have not yet made any announcements.

Analyst’s Take

Tarun Pathak, Research Director, Counterpoint Research
“I think the 5G tariff war will be there but surely not aggressive as we saw in 2016. Operators have repeatedly mentioned possible data price adjustments to boost ARPUs.”

Nomura
“Historically, Indian telecom companies have refrained from charging a premium for 4G plans (vs 2G/3G data plans). With potentially higher speed on offer and likely initial uptake from premium customers (smartphones above Rs 15,000), there is a potential for telecom companies to charge a premium for 5G (vs 4G), in our view.”

CRISIL Ratings
“The success of 5G hinges on its premium pricing over 4G. However, reducing price disparity is key to a faster transition across categories A and B. Anticipated 4G tariff hike this fiscal and 5G premium offering in the next will elevate ARPU to Rs 185-Rs 190, though it will still be lower than the ARPU of Rs 203 seen in the fourth quarter (Q4) of FY21-22 for private players in metro circles alone.”

CT Bureau