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. “This 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,” he said during the telco’s earnings call.
However, analysts believe that the telecom major is likely to take baby steps instead of starting an all-out pricing war. “What it may do is launch some 5G specific packs — those with daily or monthly 5G data limits — priced lower than the entry-level 5G packs currently,” said an industry executive.
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Moondra has also been vocal about charging consumers with high data consumption higher in order to drive better returns on investment.
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.
Currently, Jio’s 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.
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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.
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