When 5G arrives in India, it will be about maximizing the revenues of telecom operators. By offering 4G data to consumers at the lowest possible cost, India’s telecom operators have attempted to gain more market share. The only reason the aggressive price hikes haven’t happened yet is because operators want more market share before 5G networks are up and running in India. Airtel and Jio are two of the biggest companies in terms of subscriber market share. Although Vodafone Idea (Vi) also has millions of customers, it is not in the Airtel and Jio league.
The reason telecom operators are aiming for more market share ahead of 5G is revenue maximization. 5G plans will definitely be more expensive and might even come with more benefits.
Airtel, Jio and Vi would like to have as many customers as possible before 5G
Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi) would all want more market share before 5G arrives in the country. With 5G, telecom companies will have the opportunity to earn more. While 4G will still be very present, with 5G, telecom operators will be able to earn much more from each customer.
Telecommunications operators would also opt for a slow rate increase in tariffs with 4G plans. This is to avoid a high customer churn rate. But the tariff increases will also help operators earn more and increase their average revenue per user (ARPU).
However, the delayed rate increases are hurting Vodafone Idea. Honestly, Vi wouldn’t mind losing a few customers at the end of the day if the phone company could earn more from each customer through rate increases. But because Airtel and Jio are not pushing the prices up, Vi cannot do that either, otherwise he will start losing customers at a very high rate.