Union Telecom Minister Ashwini Vaishnav has said that the government wants telecom services in India to remain the cheapest in the world. According to the Cellular Operators Association of India, a telecom industry organization, telecom companies have not been able to monetize the 5G service started last year.
Vaishnav said in an interview during India Mobile Congress (IMC) 2023 that from the government side we are completely clear. We would like the telecommunication service to remain the cheapest in the whole world. Today, India’s telecom sector is the most economical among all major economies.
According to analysts, telecom operators will need to increase their average revenue per subscriber (ARPU) to Rs 270-300 in the next three years to recoup the investments being made in building 5G networks.
Currently ARPU in India is between Rs 140-200, while the global average is Rs 600-850 and in China it is around Rs 580. Said that among the four mobile service providers, Bharti Airtel and Reliance Jio have just launched 5G services and their combined investment in 5G network is estimated to be around Rs 3 lakh crore including the cost of spectrum.