When 5G arrives in India, it is all going to be about revenue maximisation for the telecom operators. By offering 4G data to the consumers at the lowest cost possible, Indian telcos have tried to gain a bigger market share. The sole reason why the aggressive tariff hikes haven’t arrived yet is that the operators want a bigger market share before 5G networks are live in India. Airtel and Jio are two of the largest companies when it comes to subscriber market share. While Vodafone Idea (Vi) also has millions of customers, it is not in the league of Airtel and Jio.
The reason why the telecom operators are going for a bigger market share before 5G is because of revenue maximisation. 5G plans are definitely going to be more expensive and might even come bundled with more benefits.
Airtel, Jio and Vi Would Want to Have as Many Customers as Possible Before 5G
Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) all would want a larger market share before 5G arrives in the country. With 5G, the telecom companies will have the opportunity to earn more. While 4G will still be very much around, with 5G, telecom operators will be able to earn much more out of each customer.
The telcos would also go for a slow-paced tariff hike with 4G plans. This is to avoid a high customer churn rate. But the tariff hikes will also help the operators in earning more and increasing their average revenue per user (ARPU).
However, the delayed tariff hikes is hurting Vodafone Idea. Honestly, Vi wouldn’t worry a lot about losing a few customers at the end of the day if the telco can earn more out of each customer through tariff hikes. But because Airtel and Jio are not pushing the prices up, Vi can’t do so either or else it will start losing customers at a very high pace.
