Last Update: January 13, 2023, 2:37 pm IST
4G data prices and your phone bill may soon go up
Even if 5G is launched in India, telcos are unlikely to bring special plans, instead people will pay more to access 5G on their existing packs.
BNP Paribas Securities said in a sectoral report that mobile phone users may have to pay more for their calls as service providers may increase their rates for 4G services.
As per the report, telecom operators will also look at increasing their Average Revenue Per User (ARPU) by offering 5G customers bigger data quota at lower cost/GB.
“For CY23, we expect continued double-digit revenue growth for the industry, continuing the consolidation trend,” BNP Paribas said.
“5G handsets are expensive and we will focus on introducing affordable 5G devices from Jio,” the report said.
“The delay in fundraising and the inability to invest in 5G could further worsen the competitive situation among postpaid customers of VIL (Vodafone Idea Ltd). Airtel is well positioned to benefit from this, in our view. On the other hand, it remains a big issue for Indus Towers. Airtel is yet to receive 75 per cent of its Rs 210 billion rights issue, which it is set to collect in two tranches. We are confident that one tranche could potentially be collected in 2023,” the report said.
According to BNP Paribas, capex by industry players is set to increase gradually in 2023 as operators accelerate the pace of 5G network rollout.
“For Indus Towers, we expect 1.5k tower addition and lower qq revenue and EBITDA as 2QFY23 revenue is seen to increase from settlement of old dues,” the report said.
Regarding the events taking place in 2023, BNP Paribas said the amount raised by VIL and the central government is likely to acquire a stake in the company.
The debt of the company is more than Rs 2 lakh crore.
Due payments to some of its vendors have been delayed and its capex is well below its peers due to ongoing liquidity issues.
Moreover, VIL’s efforts to raise funds have not yielded results. Partial conversion of dues to the Government into equity has also not fructified.
The report added that the inability to pay vendors and invest in the business could hurt its operations, especially its ability to retain high ARPU postpaid customers.
During 2023, Jio and Airtel are expected to expand their 5G networks. Operators are ready to encourage customers to adopt 5G handsets by offering bigger data allowances and better speeds.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)