According to a report by Bank of America (BoFA) Securities, Reliance Jio is expected to focus on 5G monetisation as its 5G capex cycle is nearing completion. However, significant monetisation of the next generation telecom technology is still a year away.
By charging more for 5G services through bundling and growing the market for fixed wireless access (FWA) services, telcos might see significant incremental revenue, 50 to 60 per cent of which would reflect in margins as 5G investments are mostly done now, the report says.
Furthermore, the FWA devices is expected to lead 5G monetisation for Jio with the telco taking a bundled approach.
Meanwhile, BoFA also noted that FWA revenue opportunity could be $ 5.9 billion if the average revenue per user (ARPU) hits Rs 800 with 50 million connected households. On the lower end, FWA services could contribute $ 0.6 billion at an ARPU of Rs 400 for 10 million connected homes.
As per the BoFA analysis, revenue from incremental ARPU in mobile 5G may reach $ 0.79 billion if 150 million subscribers pay Rs 50 in incremental ARPU.