5G internet will be costlier than 4G, Vodafone Idea gave information

A top Vodafone Idea executive said on Thursday that the debt-ridden company expects 5G with more data to be priced at a premium than the current 4G service. Vodafone Idea Managing Director and CEO Ravinder Takkar said during an earnings call that the company has spent a huge amount to acquire spectrum in the recently held auction, which necessitates charging a premium for 5G service. . In such a situation, it is expected that by the end of this year, the total tariff for mobile phone service will increase.

“Given the fact that a lot of money has been spent on spectrum, we believe that 5G should be priced at a premium to 4G. You can price it at a premium, but clearly within that premium you have such a premium. There may be a situation where the number of gigabytes you get is higher considering the extra bandwidth you get in a 5G because you will generally consume more.” He added that the growth in data consumption on 5G networks will depend on the use cases developed and adopted by the users.

Vodafone Idea has bought spectrum worth Rs 18,800 crore, which includes radio waves in mid-band in 17 priority circles and spectrum in 26 GHz band in 16 circles for 5G service. The company also got additional 4G spectrum in three circles of Andhra Pradesh, Karnataka and Punjab.

The company has an annual installment liability of Rs 1,680 crore on account of the fresh spectrum bidding. Vodafone Idea reported a marginal reduction of its consolidated loss to ₹7,296.7 crore for the June quarter, compared to the year-ago period, as the tariff hike boosted its realizations. The loss of the telecom company is Rs 7,319.1 crore in the year-ago quarter. Vodafone Idea’s revenue from operations has increased to around Rs 10,410 crore in the last quarter of June 30, 2022, a growth of nearly 14 per cent over the year-ago period.<!–