After 5G auction, analysts expect telecom firms to increase rates again

Telecom sector analysts expect another round of tariff hikes following the Rs 1.5-trillion auction of 5G spectrum, which concluded on Monday.

“Given the sizeable investments towards spectrum acquisition, we believe telecom companies will charge differential pricing for 5G services. Indeed, adoption of 5G services will hinge on the extent of premium over 4G tariffs. In a bid to ensure mass adoption of 5G, telecom companies may raise tariffs for 4G services, too, despite two rounds of major tariff hikes effected in December 2019 and November 2021, respectively. We expect another tariff hike for 4G services in the second half of the current fiscal,” said Manish Gupta, senior director of CRISIL Ratings.