As of January 2022, India had almost 70 crore internet users, and the penetration of the service across the country is 47 per cent. The country has the second highest population of internet users globally, although the number is little more than half of that in China, which has more than 100 crore users. With 87 per cent Indian households set to be connected by 2025, ultra-high-speed 5G services have been launched for 13 cities across the country.
Varying expansion strategies
Different telecom service providers have different timelines for expansion into all parts of India, for instance, the market leader Reliance Jio has promised 5G for every village by December 2023. On the other hand, Airtel will start with eight cities, cover most regions by March 2023, and bolster a pan-India presence by 2024.
Where will you get it first?
After the rollout begins in Diwali, 13 cities slated to receive 5G are top metros Mumbai, Delhi, Bengaluru, Kolkata, and Chennai, along with Pune, Hyderabad, Lucknow, Gurugram, and Chandigarh. Meanwhile three cities in Gujarat, Ahmedabad, Jamnagar and Gandhinagar will also be among the first to get 5G access.
Speculation about the prices
Although none of the telcos have revealed tariffs yet, India’s Telecom Minister Ashwini Vaishnaw has said that 5G plans will be at par with 4G packages. Airtel’s CTO had earlier told India Today that he hopes 5G won’t be priced significantly higher than 4G. He also added that most countries haven’t charged a premium on 4G, indicating that 5G wouldn’t be too expensive as compared to 4G.
Globally a hike of 15 to 25 per cent has been observed in the rates of 5G as compared to 4G. A report by Ericsson found that Indians are ready to pay as much as 45 per cent more for 5G. Reports that quote experts have claimed that there will just be a 10-12 per cent hike on existing 4G fares when users upgrade to 5G. Since data in India is among the cheapest globally, tariffs can be close to China where CBN offers it for $18 (Rs 1469) a month.
Reliance Jio’s ambitions are in line with its bid during the 5G spectrum auction, where it bagged the biggest chunk at 27,740 Mhz for Rs 88,078 crore, followed by Airtel’s Rs 43,084 crore bid for 19,000 Mhz. Vodafone Idea lagged far behind with just 2,668 Mhz, only ahead of Adani which got 400 Mhz at Rs 212 crore, for its data centres and super-app.
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