Airtel's 5G services may cost consumers the same as 4G

Airtel

The cost of recently rolled out 5G services for Bharti Airtel users will most likely be the same as that of the 4G network.

"Today, only 8-9 percent of phones are 5G ready. So whatever pricing you do for 5G, it's not going to determine the overall arc for the industry. There will not be any return on increased tariffs if the number of devices remain low," a company executive told The Economic Times.

He added that 5G devices would increase to 18-20 percent by March 2024 as device makers launch sub-Rs 12,000 handsets.

Moneycontrol could not independently verify the report.

Airtel's 5G network will be accessible on all Samsung and Xiaomi smartphones that are 5G ready within this month.

The firm has highlighted that the carrier will decide tariffs in the next few days, saying, “Whatever pricing we do for 5G now will not determine overall average revenue per user (ARPU)."

The company launched 5G services in eight cities including Delhi and Mumbai on October 1 and plans to cover big cities by December.

Meanwhile, Reliance Jio has also indicated that it will offer 5G services at affordable rates to increase the adoption in the country.

“By December 2023, we will deliver Jio 5G to every town, every taluka, and every tehsil of our country,” said Reliance Industries chairman Mukesh Ambani while speaking at the inaugural session of the India Mobile Congress on October 1.

"As an industry, we will also ensure the highest quality and most affordable rates than anywhere else in the world,” he said.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.