Reliance Jio, in response to a consulting paper published by the Telecom Regulatory Authority of India (TRAI), titled Digital Transformation through 5G Ecosystem, suggested that the government should frame a policy to shut down the 2G and 3G networks in India and move the existing users to 4G and 5G networks. In a separate response, Vodafone Idea (Vi) also made the same suggestion and highlighted that the existence of such barriers lead to a digital divide and impacts the ecosystem for 5G use cases.
The regulatory body sought opinions on the barriers to the development of the ecosystem for 5G use cases, which need to be addressed and the possible policy and regulatory interventions that can overcome them. Responding to this, Reliance Jio stated, “The Government should come out with a policy and glidepath for closing down the 2G and 3G networks completely so that unnecessary network costs should be avoided, and all customers can be migrated to 4G and 5G services.” The telecom operator added that this will also boost the developing ecosystem to 5G use cases.
Moondra conveyed Vi's commitment to launching 5G services, stating, "We are looking to launch 5G services in about 6-to-7 months." However, specific details about Vi's 5G rollout plans remain pending, contingent on the completion of its ongoing fundraising initiatives. He revealed that the company is in talks with technology partners to finalize its strategy for the 5G rollout in the country.
But, it is worth mentioning that its rivals, Jio and Airtel, are quite ahead in the 5G race. Jio has already completed its nationwide 5G rollout, while Airtel aims to achieve the same by March 2024.
Besides, Vi has taken strategic measures to streamline its services, including the shutdown of 3G services in key regions like Maharashtra, Gujarat, Andhra Pradesh, Mumbai, and Kolkata in Q3 2023. The company is set to phase out 3G services in other circles as well, with plans to fully switch off its 3G network by the fiscal year 2025
On the prospect of 5G monetisation, Moondra highlighted the significant investments made by Reliance Jio and Bharti Airtel in 5G infrastructure. He noted, "While significant investments have already been made (by Reliance Jio and Bharti Airtel) in 5G, there is no monetisation happening yet, though it should be around the corner."
This statement strongly suggests that both Airtel and Reliance Jio might be on the verge of announcing 5G plan prices, indicating that 5G services may not be offered for free in the near future. Although neither company has officially confirmed these developments. Vi's executive has just hinted that such announcements should be imminent. Moondra also revealed that Vi will disclose its 5G plan prices at the time of the official launch. The rest of the details are currently unknown.
Indus Towers has informed the Telecom Regulatory Authority of India (Trai) that it may limit services to Vodafone Idea (Vi) due to mounting receivables, as reported by The Economic Times. The company has also criticised Vi for its "wilful and continuous" failure to meet payment obligations.
As of September 30, Vi is in debt to Indus Towers to the tune of Rs 7,864.5 crore
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