Initially, the service will be limited to premium customers, the countdown of 5G services in the country has started. 4G price may increase before 5G, Initially 5G service will be limited to premium customers
By Vansh Sangwan - August 3, 2022
New Delhi14 minutes ago
The 700 MHz band is capable of providing coverage up to 10 km.
The tariff of 4G can be increased before the start of 5G telecom services in the country. Crisil Ratings, Nomura and Goldman Sachs expect companies to increase tariffs by 30% in 2022. After this, premium tariffs will be charged for 5G.
Bids worth Rs 1.5 lakh crore were placed in the 5G spectrum auction that ended on Monday. Given the huge investment in 5G spectrum, CRISIL Ratings expects companies to charge different rates for 5G services. According to Crisil, the use of 5G services will depend on the premium over and above the 4G tariff. That’s why companies can increase tariffs for 4G services to ensure that people adopt 5G on a large scale. Nomura Global Market Research also estimates that companies can charge up to 30% premium on tariffs of 1.5GB per day 4G plans. Nomura has said in a report, “Initially premium customers (those with smartphones above Rs 15,000) will subscribe to 5G services. In such a situation, we estimate that telcos will charge premium tariff on 5G. On the other hand, Goldman Sachs has said in a note, ‘We have already estimated that by the end of 2022, the telecom companies will once again increase the tariff. In our opinion, this will prove to be the next step in the growth of earnings in this sector.
Reliance Jio in strongest position for 5G
Jio is the only operator in all 22 telecom circles to buy 5G spectrum in the premium 700 MHz band. Due to this, Jio has taken an early lead in the 5G race. According to telecom experts, due to the low frequency band, its signals can reach inside buildings. Hence it is suitable for indoor coverage. Its outdoor coverage is also great. A tower in the 700 MHz band can provide coverage up to 10 km.
We talked to NewsBust India Expert Mahesh Uppal about the introduction of 5G services in the country, in which we got to know the answers to many questions from him.
How long will it take for companies to get 5G spectrum?
Its process should be completed in next 10-15 days.
When will 5G services start in the country?
5G services are likely to start for select users like corporates and professionals by October-November or by the end of the year. It may take 2-3 years for these services to reach the common people.
Any particular reason for the long time?
Companies will have to invest a lot in creating 5G infrastructure and it will also take time. Apart from this, companies will increase the scope of 5G considering the speed at which the demand is increasing.
Why are companies insisting on 700 MHz spectrum for 5G?
Because the range of this spectrum is many times greater than the high-frequency spectrum. Due to this companies have to install less towers.
Will 5G services be more expensive than 4G?
Yes, companies will charge a premium price initially for 5G services. But as its reach increases, prices will likely continue to come down.