Free 5G Services Bring Huge Numbers!

India is currently home to 159 million 5G subscribers, marking a 15% penetration, according to a recent report by Bank of America Global Research. The study predicts an astonishing surge to over 490 million subscribers, reaching a 42% penetration rate by 2028. This exponential growth has defied expectations, surpassing the government’s December announcement of reaching 100 million subscribers.

Amidst this evolution, the report foresees a potential tariff hike in the latter half of 2024, projecting Medium-term Average Revenue Per Users (ARPUs) to touch Rs 250 and climb to Rs 300 over the next five to seven years. Bharti Airtel, Reliance Jio, and Vodafone Idea have reported ARPU figures, setting the stage for competitive dynamics in the telecom sector.

While FY25 is anticipated to maintain consistent capital expenditure as operators expand 5G networks, the report suggests a subsequent drop in spending, with FY26 witnessing a more stabilized 5G rollout. However, challenges persist, particularly in addressing latency issues.

As the digital landscape evolves, successful telcos are exploring new revenue streams, with digital revenues accounting for 5-10% of their top line. The future holds exciting possibilities, including the monetization of cloud gaming, augmented reality, and virtual reality, showcasing the telcos’ commitment to innovation.