Reliance Jio and Airtel might not offer unlimited 5G data
TRAI is reportedly planning to direct Reliance Jio and Bharti Airtel to stop offering unlimited 5G data in their tariff plans.
Reliance Jio and Airtel might not offer unlimited 5G services in India as per a new directive of Telecom Regulatory Authority of India (TRAI), which will likely be issued soon.
The Telecom Regulatory Authority of India (TRAI) is reportedly planning to direct Reliance Jio and Bharti Airtel to stop offering unlimited 5G data in their tariff plans after investigating a recent complaint by Vodafone against them of predatory pricing.
Vodafone Idea doesn’t offer 5G Services
The two major telecom operator has started serving 5G services in many cities across the country, while Vi is yet to roll out the 5G network for its users. Though, it does not have 5G services, it offers 5G Ready SIM cards, whereas Airtel and Jio offer 5G services on existing 4G packs.
Vodafone Idea has complained that Jio and Airtel have occupied the market with a 30% market share across circles. They are engaging in predatory pricing by offering 5G tariffs below cost.
According to sources, the telecom regulator investigated on the basis of the complaint and concluded that the tariffs cannot be considered predatory since they are not below cost.
The telecom regulator stated that offering 5G services at 4G rates cannot be termed predatory. However, TRAI concluded that providing unlimited data as part of any plan goes against the fair usage policy (FUP) principle of tariff regulations, and therefore Reliance Jio and Airtel should stop it.
After the regulation is put in place, the two telcos will continue to provide their data plans at 4G rates but will have to reduce the speed to lower limits if the data
If TRAI does issue this directive, Jio and Airtel will be able to continue with their data plans at 4G rates but will have to reduce the speed to lower limits if the data is consumed before the new billing cycle begins. Sources quoted in the report stated that the principle of fair usage policy applies to 4G plans and should also apply to 5G tariffs.
According to rules, the telecom operators reduce the data speeds to 64 Kbps of 4G plans after the subscriber exhaust their data limit before a new billing cycle begins. The operators are required to publish this information with their tariff plans on their websites. They also need to send alerts to subscribers when data usage reaches 50%, 90%, and 100%.
5G in India
Both Airtel and Jio have reached over 3000 5G City mark, respectively. However, the regulatory agency maintains that offering unlimited data is prohibited under the tariff regulations, and therefore, the operators should adhere to the regulations.