Airtel and Jio Bid Farewell to Unlimited 5G Offerings

Remember the early days of 4G? Data caps, and endless battles over who can use all the internet in one second? Those days were thought to be over with the advent of 5G, with its blazing speeds and endless promises of a data-rich utopia. But wait, because that dream may have to face reality, at least in India.

Airtel and Jio, the two biggest names in the Indian telecom industry, are reportedly planning to end their unlimited 5G plans in late 2024. It’s got everyone excited – from tech enthusiasts to casual scrollers to that uncle who still uses a feature phone but loves listening to conversations. So, what’s the deal?

Airtel and Jio Narrative

Analysts are saying that both Airtel and Jio are eyeing ways to boost their earnings and revenue growth. To achieve this, they’re considering raising the tariffs. Airtel and Jio are thinking of improving RoCE (return on capital employed) by at least 20 percent. This move is aimed at recovering the higher costs linked to customer acquisition and 5G investments.

Currently, Airtel’s average revenue per user (ARPU) stands at Rs 200 per month, but there’s buzz that they’re contemplating increasing it to Rs 250. Meanwhile, the 5G user base is steadily growing, with over 125 million users in the country. Both telecom companies have plans to expand this user base to around 200 million. Exciting times ahead!

Why the change of heart?

Turns out, 5G is an expensive beast to tame. Building and maintaining infrastructure requires huge investments, and those fancy towers and cables don’t exactly grow on trees. Currently, both Airtel and Jio are offering unlimited 5G at the same price as their existing 4G plans. Think about it – you’re giving everyone a Ferrari to drive down a dirt track and expecting to fill up the gas tank with money in their pockets.

The thing is: 5G is like a fire-breathing dragon compared to 4G’s dependable donkey. It downloads movies in the blink of an eye, streams games without interruption, and lets you upload a vacation video in seconds. However, all that fire consumes fuel like nobody’s business. Imagine if everyone in your neighbourhood suddenly got a supercar and started driving around, guzzling gallons of gas. Very soon, petrol pumps run out, right?

What does this mean for you?

So, what does this possible departure of unlimited 5G mean for us, data-hungry citizens? Here’s an analysis:

• Be prepared for limited plans: say goodbye to endless troves of data. Instead, you’ll probably see plans with data limits, like we have for 4G now. But the good news is that these limits may be much higher, reflecting the increased capacity of 5G networks.

• A price hike is coming your way: Don’t expect those 5G speeds to come without a price. Those fancy new plans with the big data buckets? They’ll probably cost a little more than what you’re paying now. How much more? We don’t know yet, but it’s safe to say that it won’t be a pocket-friendly reduction.

• Time to re-think your usage: With limited data, it might be time to pay a little more attention to how you use your phone. That important Zoom call may have to be left behind to stream endless hours of cat videos.

Is this the end of the 5G dream?

Think of it as a change in gear, not an interruption to the grind. The future of 5G is still bright, and these changes could actually be good for the long run.

• Stability: By regulating data usage, Airtel and Jio can ensure that their networks do not collapse due to the load of 5G traffic. This means faster speeds and a better experience for everyone.

• More value for money: Capped plans with higher data limits may actually be more cost-effective for moderate users who don’t need unlimited data. Instead of paying for something you don’t use, you’ll get a plan that better meets your needs.

• Innovation drives affordability: Competition in the telecommunications market is fierce, and these changes could pave the way for more innovative and affordable 5G plans in the future. Remember, the early days of 4G weren’t exactly cheap, but look where we are now.

Airtel and Jio: Bottom-line

Airtel and Jio phasing out unlimited 5G may seem like a hassle, but it’s another step in the evolution of this revolutionary technology. By making these changes, they’re laying the foundation for a sustainable and affordable 5G future for everyone, even that uncle with an ancient Nokia. So, embrace the change, adjust your data habits, and keep your eyes on those exciting new 5G plans. The future of the download button still looks quite bright, even if there are some “terms and conditions” attached to it.

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