2024 will be the year when we might finally see 5G being monetised in a more meaningful manner by the telcos. However, there's more that would shock the customers. We are talking about the tariff hikes. Further, there's space communications to look forward to. Today, we will talk about what we can expect from the Indian telecom sector in 2024.
Will 5G Tariffs Come?
5G is witnessing a fast uptake from Indian consumers. In 2024, more users will upgrade to 5G phones, thanks to OEMs (original equipment manufacturers) bringing in more affordable devices. With a quick 5G rollout, 5G subscribers could easily cross the 250 million mark in 2024.
This will be a sizeable market for the telcos to monetise. But will they do it is the main question! Airtel's CEO has hinted that they are not yet looking to monetise 5G. But will 5G be offered at higher priced plans compared to now? Well, no one knows for sure, including the analysts.
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Will Telcos Hike Tariffs?
It can be said with absolute certainty that telcos will hike tariffs in 2024. It is the general elections that have likely delayed the tariff hikes. Once they are concluded, the tariff hikes will definitely kick in. Airtel has shared its intent of not shying away from hiking the prices. The telco will definitely be followed by its competitors.
While the postpaid mobile plans should remain unchanged, the higher-end prepaid plans which have not been touched for the last two years should see a 10-15% hike. It will help the telcos in improving their ARPU (average revenue per user).
Satcom Players Entry
Jio SpaceFiber and Eutelsat OneWeb are expected to kick off services in 2024. Eutelsat OneWeb has all the necessary approvals from the government and it is now just waiting for the spectrum. Jio SpaceFiber already demonstrated the power of its networks generated by the MEO (Medium Earth Orbit) satellites.
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6 GHz Spectrum Allocation
The telcos have been demanding the government to allocate 6 GHz spectrum for 5G/IMT services. The GSM Association has also voiced its opinion about the importance of the 6 GHz spectrum for 5G services. The current C-band spectrum available for the Indian telcos is not enough. So what the government will do is the question here. At the WRC 2023, the 6 GHz band has already been recognised as an important band for IMT services.
Villages to be Covered by 5G
Airtel has already cleared its intent about launching 5G in the villages. It will be interesting to see whether that actually happens or not. Jio will also likely not miss out on it. However, the use cases of 5G for urban consumers are so limited that it doesn't make sense to launch it rapidly in rural areas.
Regardless, these are some of the things that you can look forward to in 2024. Yes, there's also BSNL 4G and Vi 5G. But talking about their launch is speculation as no fresh statements from the companies have arrived yet.
