As per a report by Motilal Oswal, Indian telecom operators should discontinue free unlimited 5G data offerings and begin monetising rising data consumption on next-generation networks.
The firm noted that leading telecom operators currently bundle unlimited 5G access at no additional cost with higher-value prepaid plans, typically those offering around 2 GB of daily data or more.
According to the brokerage, these promotional offers have helped accelerate 5G adoption across the country. However, it said the strategy is now limiting revenue growth and delaying returns on substantial investments made in spectrum acquisition and network deployment.
Further, the firm pointed out that a significant proportion of subscribers on major networks have already migrated to 5G services, making the continuation of free unlimited usage increasingly difficult to sustain economically.
The report recommended that operators transition towards a more structured pricing framework through differentiated 5G plans, higher tariffs and experience-based service tiers to improve average revenue per user.
The brokerage added that as 5G coverage matures, the industry’s focus is expected to shift from subscriber acquisition to monetisation, leading to a gradual move away from unlimited promotional offers towards paid 5G services.
It also noted that regulatory scrutiny of “unlimited” data plans has increased in recent years, further supporting the need for clearer fair-usage policies and more sustainable pricing models.
