Akhil Gupta, vice-chairman of parent Bharti Enterprises during a recent interview said that Bharti Airtel is likely to provide 5G services in the country throughout high tariff plans. Gupta said that even though the telecom major may not charge a premium for the superfast network, it might unveil expensive plans, and prompt users, to improve to the impending network as data consumption rises.
Gupta also said, “My feeling is that with 5G, penetration will increase so quickly that it will be like any other offering. Anybody who has a 5G handset will get 5G. They will consume more and automatically go to a higher tariff plan. This would result in higher revenues,” He added, “I don’t think there is going to be something like a pure premium 5G. At best we could start giving 5G on slightly higher plans, but let the operating people decide what they want to do”.
He additionally added that 5G, much like older and even imminent technologies, will be supply-led, with customers’ consumption of more data with rapid usage of the internet, contributing to higher revenue for telcos.
The average revenue per user (Arpu) for all Indian telecom service providers is well beneath ₹200, with Airtel foremost among earls with an Arpu of ₹183 for the quarter ended June. Telcos have said that they will lift tariffs added this year, having amplified prepaid tariffs by 20-25% in November. Telcos want to enhance Arpus to around ₹300-350 in the medium term, but despite the increases, India tariffs will endure much lower than in Western markets.
Gupta said the entrance of new rivals, in the long term, did not distress Airtel as it has become battle-hardened, facing several years of rivalry, together with the ambush by Reliance Jio in 2016, and had succeeded to maintain healthy revenues, profits and free cash flows.
In the recently concluded spectrum auctions, Adani Enterprises unit Adani Data Networks safeguarded 5G spectrum in four circles in the 26GHz band, expected at proposing enterprise or captive service. The company has sustained that it does not have plans to enter consumer services, but numerous specialists said the Adani Group might enter the industry in the long run.
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