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Monday, August 15, 2022

Vodafone Idea expects 5G services to cost more than 4G, here’s why

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Vodafone Idea CEO Ravinder Takkar expects 5G plan prices to be higher than 4G, according to a report by PTI. The prices of 4G plans were increased in November 2021 and if 5G plans will be available at a higher price, it means that users will have to spend even more. Although there is no information on what the price of 5G services might be, here is what the CEO of Vodafone Idea expects to happen.

Takkar says telecom companies have spent a lot of money buying spectra in the recently held auctions, so 5G services shouldn’t be available at a lower price. He says that the overall price for mobile phone services could increase by the end of the year.

“Given the fact that a fair amount of money has been spent on spectrum, we think 5G should be priced more than 4G. You can price it higher, but, of course, with this bounty, you might have a situation where the number of gigabytes you get is higher because you’re potentially consuming more, given the extra bandwidth you get in 5G, Takkar said on an earnings call .

With a higher price, he says users will likely get more data. But that will depend on the use cases developed and adopted by 4G consumers. Vodafone Idea reportedly bought spectrum worth Rs 18,800 crore. The company acquired 3300 MHz and 26 Ghz 5G bands to provide users with a faster experience.

“We have successfully acquired mid-band 5G spectrum (3300 MHz band) in our 17 priority circles and mmWave 5G spectrum (26 GHz band) in 16 circles,” the company said in a statement. The telecom giant has secured additional 4G spectrum for three locations including Android Pradesh, Karnataka and Punjab.

Takkar suggested that the increase in prices for 4G services helped them recoup some of the loss in revenue and so he expects the same to happen again later this year.

“Just to sum this up on 4G pricing, I think there’s definitely an opportunity based on the value that’s been continuously delivered to consumers and how seamlessly the early price increases have been absorbed I think that there is an opportunity to do it soon,” Takkar said.

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