Reliance Jio 5G tariffs will be available at 4G prices

Reliance Jio will reportedly offer 5G services with no extra premium. The Mukesh Ambani-led telecom company is unlikely to raise consumer tariffs for 5G, which it began rolling out in October last year. With 5G coverage in over 7,500 cities, towns, and enclosures, Jio hopes to bolster its position as the affordable carrier in the market. The move is expected to put some pressure on Airtel, which is the only other carrier with 5G services in India. Other operators such as Vi (Vodafone Idea) and BSNL have not rolled out their 5G services yet, making Jio stand out for its offerings as and when its 5G services go commercial.

As reported by the Times of India, Jio will target over 240 million users currently on other networks, such as Airtel, Vi, BSNL, and MTNL, with its move to continue existing tariffs for 5G services. “This is the vision of Reliance Industries chairman Mukesh Ambani, and Jio chairman Akash Ambani too,” the report quoted Mathew Oommen, president of Reliance Jio, as saying. He added that operators, especially Jio, owe “this to get inclusiveness” as an industry. “More than 200 million-plus mobile consumers still do not have the right experience with 2G, and the onus is on the industry to give them digital empowerment,” he added.

Jio wants mobile subscribers to switch to 5G as fast as possible and one of the ways that can catalyse the process is affordability. “The only way to make 2G-mukt (2G-free) telecom industry is by offering affordable accessibility. Let all Indians have access to data. We don’t deprive them of that. We want to deliver superior customer experience for all Indians,” the report quoted Oommen as saying.

Not charging the 5G premium, however, may have an impact on the revenue. The report highlighted that the average revenue per user (ARPU) for Jio at the end of the second quarter of this fiscal year was Rs 181.7, up from Rs 177.2 in the same quarter in the last fiscal. Airtel, on the other hand, has been raising tariff prices to shore up ARPUs, citing the health of the telecom industry. “We need greater financial health of the industry because a lot of capital is going up. The only way that will happen is if ARPU goes up,” the report quoted Bharti Airtel CEO Gopal Vittal. Airtel’s ARPU at the end of the fiscal was Rs 200, which is a lot higher than that of Jio. But Airtel currently has not said anything about its 5G tariffs.