Telcos Urged to End Free 5G, Start Monetizing Data

Telecom operators in India are being advised by analysts to discontinue free unlimited 5G data offerings and focus on monetizing the higher data consumption driven by the new technology. This recommendation comes as the combined data traffic for leading operators, including Jio's fiber-to-the-home usage, grew by 29% year-on-year in FY26. Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) currently provide unlimited 5G data with prepaid packs starting at ₹198-199.

The average monthly data consumption per subscriber saw a substantial rise to 34.1GB in FY26, up from 27.3GB in FY25. This surge is partly attributed to the accelerated rollout of Fixed Wireless Access (FWA) by Jio and increased 5G adoption. Analysts suggest that a change in tariff architecture is necessary to effectively monetize this growth in data usage, which has seen a significant increase since FY19.

Industry executives acknowledge issues with the current pricing structure, noting that unlimited data plans cap revenue potential. While blended Average Revenue Per User (ARPU) for private telcos grew approximately 8.5% year-on-year to ₹215 in FY26, concerns remain about the sustainability of growth without revised monetization strategies. Vi sees opportunities in upgrading feature phone users and engaging non-data consuming smartphone users.