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5G to challenge 4G services: Jio President

Jio believes that it’s high time for telcos to “either disrupt the marketplace or face disruption”

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MUMBAI: With time, third generation services (3G) were replaced by fourth generation services (4G) and Reliance Jio played a vital role in the transforming phase. And once again India’s youngest telecom company is eager to quickly roll out the ultra-fast fifth generation services (5G).

While speaking to the Economic Times, Jio president Mathew Oommen spoke about the challenges which 4G will face after the deployment of 5G.

Oommen explained, “Once 5G digital services arrive, business will be based on the actual value that the telcos offer a consumer in terms of digital solutions, content, and services.”

He briefed about traditional pricing models being revamped, “4G will be challenged by the imminent wave of 5G services that will no longer be charged based on minutes, bits or bytes anymore.” Rather telcos would adapt to a new pricing mechanism which would look to measure the “overall revenue per subscriber” for a combination of digital services.

With that being said, Jio believes that it’s high time for telcos to “either disrupt the marketplace or face disruption”.

Oommen stated that “normalcy would soon get restored” in the telecom sector as once the telcos catch up with the technological advancement which will only increase usage that would drive compensation from newer services.

The 5G spectrum allocations will take place by the second half of 2019 according to the government. Jio Chairman Mukesh Ambani recently had said that India would be ready for 5G services by 2020. Jio has indicated its eagerness to roll out 5G services as it seeks an early auction of 5G airwaves, whereas Bharti Airtel and Vodafone Idea want the auction dates to be pushed back to late-2019 and 2020, respectively.

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