Airtel to finalise tariff for 5G services in a few days, executive says

Broader point is that tariff must rise and telco will be happy to take the lead, he adds

Bharti Airtel will take a call on 5G tariff in a few days, a company executive said here on Monday.

Airtel rolled out its 5G service in eight cities on Saturday and is advancing its capital expenditure plans for a faster roll-out this year. It plans to expand the coverage across India by March 2024.

“We have still not decided about it (5G tariff). We are in the process of finalising it,” the executive said on the sidelines of the India Mobile Congress.

While Airtel is yet to take a call on its pricing strategy, its rival Reliance Jio has hinted at offering the service at affordable rates to increase adoption of 5G services in the country.

The Airtel executive said that only 8-9 per cent of mobile devices in India are 5G enabled and that would increase to 18-20 per cent by March 2024 as device makers launch sub-Rs 12,000 handsets. “Whatever pricing we do for 5G now will not determine overall average revenue per user (ARPU),” he said. The broader point is that tariffs must go up and Airtel will be happy to take the lead, he added.

He cited the example of Thailand, which has seen a low uptake of 5G services as it was charged at a premium to 4G, and added that the company needs to be careful while deciding its pricing strategy.