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<\/span><\/figcaption><\/figure>Mumbai: Bharti Airtel<\/a>’s 5G services<\/a> will be present in 7000 towns, 100,000 villages along with all major urban areas by March 2024, but monetization would be a challenge, Gopal Vittal<\/a>, the telco’s chief executive (India, South Asia), said Wednesday.

While the pace of roll-out has been fast, challenges in 5G monetization<\/a> persist due to lack of tariff hikes, and relevant 5G<\/a> applications, he added while speaking at an industry<\/a> event.

“ARPUs (average revenue per user) will increase only if there is an increase in tariff. Right now, us and the other player (Reliance Jio) offer unlimited 5G services for free. We have, however, seen data consumption spike because of 5G services,” he said.

Airtel<\/a> and Jio started the phased launch of their 5G services in the country in October 2022 and have been expanding coverage since. However, neither has introduced 5G specific tariffs for now.

For the December 2022 quarter, all three telcos showed flat or marginal growth in per capita data consumption. Analysts and telco executives had said that the 5G led data consumption spike will start reflecting from the March 2023 quarter or six months into the 5G launch.

In addition to 5G monetization challenges, Vittal said that there were other challenges that prevent utilization of 5G at full potential.
The lack of relevant scalable applications that make use of 5G’s proposition of high speed and low latency for one, has been a challenge, the Airtel chief executive pointed out.

“And therefore, you need the ecosystem coming together. It can't be done just by us. So, the telecom industry is moving at a radical pace. And I will say for the first time, the rest of the ecosystem is not keeping pace,” Vittal said.

Another challenge he listed was the lack of infrastructure support, citing complex rules at state and municipal levels for laying out fibre, “the fat pipe around which lots of data can be moved”, as Vittal put it.

\"Dearth<\/a><\/figure>

Dearth of applications, 'backward looking' regulations limiting 5G benefits in India: Airtel CEO<\/a><\/h2>

Vittal used the example of a home served by linear broadcast content to illustrate the \"wild west\" we are in from a regulatory perspective. The first home gets its content from a direct-to-home dish, where the operator is licensed and pays a fee of 8 per cent, the second home is served by the local cable operator who is also not allowed to dabble in content creation like the DTH rival, while the third is served by an application like Netflix, where there are no restrictions at all on licensing, licensing fees or owning content creation companies.<\/p><\/div>

\"\"
<\/span><\/figcaption><\/figure>Mumbai: Bharti Airtel<\/a>’s 5G services<\/a> will be present in 7000 towns, 100,000 villages along with all major urban areas by March 2024, but monetization would be a challenge, Gopal Vittal<\/a>, the telco’s chief executive (India, South Asia), said Wednesday.

While the pace of roll-out has been fast, challenges in 5G monetization<\/a> persist due to lack of tariff hikes, and relevant 5G<\/a> applications, he added while speaking at an industry<\/a> event.

“ARPUs (average revenue per user) will increase only if there is an increase in tariff. Right now, us and the other player (Reliance Jio) offer unlimited 5G services for free. We have, however, seen data consumption spike because of 5G services,” he said.

Airtel<\/a> and Jio started the phased launch of their 5G services in the country in October 2022 and have been expanding coverage since. However, neither has introduced 5G specific tariffs for now.

For the December 2022 quarter, all three telcos showed flat or marginal growth in per capita data consumption. Analysts and telco executives had said that the 5G led data consumption spike will start reflecting from the March 2023 quarter or six months into the 5G launch.

In addition to 5G monetization challenges, Vittal said that there were other challenges that prevent utilization of 5G at full potential.
The lack of relevant scalable applications that make use of 5G’s proposition of high speed and low latency for one, has been a challenge, the Airtel chief executive pointed out.

“And therefore, you need the ecosystem coming together. It can't be done just by us. So, the telecom industry is moving at a radical pace. And I will say for the first time, the rest of the ecosystem is not keeping pace,” Vittal said.

Another challenge he listed was the lack of infrastructure support, citing complex rules at state and municipal levels for laying out fibre, “the fat pipe around which lots of data can be moved”, as Vittal put it.

\"Dearth<\/a><\/figure>

Dearth of applications, 'backward looking' regulations limiting 5G benefits in India: Airtel CEO<\/a><\/h2>

Vittal used the example of a home served by linear broadcast content to illustrate the \"wild west\" we are in from a regulatory perspective. The first home gets its content from a direct-to-home dish, where the operator is licensed and pays a fee of 8 per cent, the second home is served by the local cable operator who is also not allowed to dabble in content creation like the DTH rival, while the third is served by an application like Netflix, where there are no restrictions at all on licensing, licensing fees or owning content creation companies.<\/p><\/div>