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Vodafone Idea expects 5G services to be more expensive than 4G. Here’s the reason

There isn't any information about what will be the cost for the 5G services, here's the thing Vodafone Idea's CEO believes will occur.

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The Vodafone Idea CEO Ravinder Takkar has predicted that the cost of 5G services will likely be more than 4G plans, according to an article by PTI.

Prices of 4G plans increased in November 2021, and if 5G plans are offered at a higher cost which means customers will be required to pay more. Although there are no details on the cost of 5G plans.

Here’s what Vodafone Idea’s CEO hopes to see happen:

Takkar claims that telecom companies have invested significant amounts of money to purchase spectrums during the recent auctions, therefore the 5G services won’t be offered at a lower cost. Takkar says that the cost of mobile phone services might increase before the close of the year.

“Given how an enviable quantity of funds has been invested on the spectrum and that we think 5G should be priced higher over 4G. You could set it up at a premium but, obviously, it comes with a premium. It is possible to have a situation in which the amount of gigabytes you receive is greater because you’re likely to consume more bandwidth, given the additional bandwidth you will get with 5G, Takkar said.

With a price increase, it is said that users will gain more data. However, this will depend on the use cases created and accepted by consumers of 4G. Vodafone Idea reportedly bought spectrum worth 18,800 crores. Vodafone Idea purchased 3,300MHz as well as 26Ghz 5G bands, which will give customers a better experience.

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“We have successfully acquired mid-band 5G spectrum (3300 MHz band) in our 17 priority circles and mmWave 5G spectrum (26 GHz band) in 16 circles,” the company announced in the statement. The telecom giant has acquired an additional spectrum of 4G for three locations that include Andra Pradesh, Karnataka and Punjab.

Takkar said that the rise in costs for 4G has enabled them to recuperate some of the losses on revenue, and thus, expect similar results to occur in the course of this year.

“Just to summarise that on the 4G pricing, I think there is certainly an opportunity based on the value that has been continuously provided to the consumers and how the first few price increases have been absorbed in a seamless manner, I think there’s an opportunity to do that soon,” Takkar added.

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