5G Impact: Telcos may raise tariff this year

Kolkata: Mobile carriers need to increase tariffs by 4% on average in 2022 to address their higher-than-expected spends on 5G airwaves in the just concluded sale as they will enjoy substantial savings on spectrum usage charges (SUC), said analysts.

Reliance Jio Infocomm needs to raise rates more than rivals Bharti Airtel and Vodafone Idea (Vi), they said.

“With large SUC savings, the net annual outlay for spectrum for telcos would require (either) modest 4% incremental tariff hikes (on overall subscribers), or a 30% premium for 5G plans (vs the popular 84 day, 1.5GB/day 4G plan),” said Nomura Research.