In the upcoming days, Bharti Airtel plans to introduce 5G tariff plans, however, it is not likely to charge a premium as 5G-enabled devices constitute just eight to nine percent on the network and the same could impact upgradation.

The company rolled out 5G services across eight cities including Delhi and Mumbai on October 1 and plans to cover the big cities by December

According to reports, pricing the 5G tariffs higher at this stage is believed to not raise the average revenue per user (ARPU), given the low subscriber base it has currently. However, the tariffs are expected to go up as the current rates are not sustainable.

The telco aims to achieve an ARPU of Rs.200 in near term and then reach to Rs.300.

Word on the street claims that only eight to nine percent phones are 5G ready. Therefore, irrespective of the pricing customers opt for 5G, it's said that it will not determine the overall arc for the industry.

Additionally, reports say that there will not be any return on increased tariffs if the number of devices remain low. Taking Thailand’s example, with 5G being priced at a premium over regular pricing, the uptake is reported to be low.

On the other hand, Airtel is reported to be still finalizing its tariff strategy and what kind of plans should be offered.

Companies are now told to decide prudently while announcing tariffs, as they need to get a reasonable return on capital.

Today, the return on investment is said to be about seven percent for the industry. That needs to go up and will only come through ARPU. It is said that the decision of what we should price on 5G is not going to change the ARPU equation. That has to be through the overall tariff hikes.

The company has not decided about the next round of tariff hikes as it must be a collective effort.

Mobile operators increased rates in December last year and analysts predict that another hike may be round the corner soon.

The company plans to expand the 5G network to cover the top tier cities by December and another set of 50-60 cities by March next year and cover the entire country by March 2024. The company is in regular touch with smartphone brands to tune the devices for receiving Airtel's 5G services.