With Vodafone Idea (Vi) getting ready to launch its commercial 5G services in March, almost two-and-a-half years after Reliance Jio and Bharti Airtel, all eyes will be on its pricing strategy. <\/p>\n
CEO Akshaya Moondra had said recently that the telco will have to look at 5G pricing differently than peers Jio and Airtel since it is a late entrant. \u201cThis is a decision we will have to take closer to the launch. But definitely, if you are just starting with our network, which is not yet mature as in the case of peers, one will have to look at pricing in that fashion,\u201d he said during the telco\u2019s earnings call. <\/p>\n
However, analysts believe that the telecom major is likely to take baby steps instead of starting an all-out pricing war. \u201cWhat it may do is launch some 5G specific packs \u2014 those with daily or monthly 5G data limits \u2014 priced lower than the entry-level 5G packs currently,\u201d said an industry executive.<\/p>\n
Moondra has also been vocal about charging consumers with high data consumption higher in order to drive better returns on investment. <\/p>\n
Another option then, analysts said, could be metered pricing where users pay according to the data consumption, rather than having unlimited 5G data for a lump sum amount. <\/p>\n
Currently, Jio\u2019s entry-level 5G plans are at Rs 399 for 28 days with 2.5 GB data while Airtel offers plans starting at Rs 379 for a month, with a similar data cap. However, those eligible for 5G data access, do not have a cap on 5G usage. Executives at both firms indicated that currently there are no plans to slash entry-level 5G tariffs.<\/p>\n
Email queries to Vodafone Idea regarding the same went unanswered. Airtel and Jio also did not respond to email queries sent by FE regarding the 5G pricing strategy. <\/p>\n
\u201cIf Vodafone Idea initiates a price war on 5G at this point, it runs the risk of losing industry support for future tariff hikes, and tariff hikes will need to happen to keep the Arpu (average revenue per unit) growth momentum for all private players,\u201d an analyst said. <\/p>\n
Arpu growth has been a challenge in the industry, and only recently, after the tariff hikes taken in July 2024, did market leader Jio see a surge on the metric after four quarters of flat growth.<\/p>\n
\u201cVodafone has two challenges on churn \u2014 it is losing 2G\/3G subscribers to BSNL and it is losing premium customers to Jio and Airtel. 5G Pricing will be key to stemming the outflow of customers at both ends,\u201d said an analyst from a leading brokerage.<\/p>\n","protected":false},"excerpt":{"rendered":"
With Vodafone Idea (Vi) getting ready to launch its commercial 5G services in March, almost two-and-a-half years after Reliance Jio and Bharti Airtel, all eyes will be on its pricing strategy. CEO Akshaya Moondra had said recently that the telco will have to look at 5G pricing differently than peers Jio and Airtel since it is a late entrant. \u201cThis is a decision we will have to take closer to the launch. But definitely, if you are just starting with our network, which is not yet mature as in the case of peers, one will have to look at pricing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-893330","post","type-post","status-publish","format-standard","hentry","category-telecom"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/893330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=893330"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/893330\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=893330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=893330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=893330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}