Telcos Might Resort to Another Price Hike After Initiation of Costly 5G Services

On the other hand, the overall debt of the telecom industry remains stagnant as it has been stated by ICRA that debt levels will remain the same at around Rs 4.7 lakh crore as of March 31, 2022, and will be moderated to Rs 4.5 lakh on March 31, 2023. To make 5G available across India, the telcos have already been asking for the affordable pricing of the spectrum.

Highlights

  • To make 5G available across India, the telcos have already been asking for the affordable pricing of the spectrum.
  • The recent price hike has been positive for the industry.
  • It is expected that the metro cities of the country will be the first to witness the launch of 5G services in India.

Follow Us

Telecom Sector in India

It hasn’t been long since the telecom industry in India witnessed an overall tariff hike. Indian mobile service operators resorted to 20%-25% tariff hikes for all the prepaid plans offered by them. Now it is expected that telcos might opt for another price hike in the foreseeable future with the introduction of 5G services in the country which is the world’s second-largest market. As per ET Telecom, even though the initiation of 5G services will ensure the generation of additional revenue for the telcos particularly from the enterprise and digital services segment, it is going to come at a high cost. The major cost is going to be the amount companies will pay for the airwaves at the 5G auction.




The Current Scenario

On the other hand, the overall debt of the telecom industry remains stagnant as it has been stated by ICRA that debt levels will remain the same at around Rs 4.7 lakh crore as of March 31, 2022, and will be moderated to Rs 4.5 lakh on March 31, 2023. To make 5G available across India, the telcos have already been asking for the affordable pricing of the spectrum. Senior Director, Corporates at Finch Ratings, Nitish Soni has said in a statement that the recent price hike has been positive for the industry. He added that after having clarity on the spectrum next year, it is expected that the telcos will opt for another price hike.

The cost pressure mentioned above paired up with more headroom in the market is going to put the telcos in a position where they will resort to another price hike. However, the price hike is expected to happen by the end of 2022.

The three private telcos in the country Reliance Jio, Bharti Airtel and Vodafone Idea have already started conducting 5G trials in the country. It is also expected that the Telecom Regulatory Authority of India (TRAI) will also make steady recommendations on the process of auction of the spectrum allowing DoT to begin the auction of the 5G spectrum. The telcos have already begun the 5G trials in the cities across India including Bangalore, Gurugram, Kolkata, Chennai, Hyderabad, Mumbai, Delhi Jamnagar, Ahmedabad, Pune and more. It is expected that the metro cities of the country will be the first to witness the launch of 5G services in India.

Reported By

Anupam has been a tech enthusiast for a while and is always on the feet to know about the new launches whether it is smartphones or any other devices. He’s trying to share this passion with the help of his writing skills. Apart from these he’s also a pursuing freelance digital artist and loves creating artworks.

Recent Comments

Faraz :

Nice.. & BSNL 60 Mbps is even perfect plan for many if there are more than 5 devices connected. Many…

BSNL 60 Mbps Plan is Likely One of the Best…

Faraz :

Budget phones have degraded more than any other budget phones since pandemic. They are still selling some craps like Helio…

POCO C61 to Launch on March 26, 2024

shivraj roy :

i feel Vi has improved than what it was in 2022 i usually get around 8-10mbps in very heavily dense…

5G Users Consuming 3.6 Times More Data than 4G Users…

biswadeepmondal :

JioAir Fiber is working very well in KPA & HLR. Sadly they don't have any data only plan.

REP: Airtel Expands Network Footprint in Bankura District of West…

Anonymous :

In line with Airtel's ?49 plan that offers 20GB of data for the same duration.

Jio Brings New Rs 49 Plan

Load More
Subscribe
Notify of
4 Comments
newest
oldest most voted
Inline Feedbacks
View all comments