Tariff hikes needed for monetising Rs 2 trn investment: Analysts on Jio 5G

Analysts at Jefferies said Jio's approach to 5G has striking similarities to its approach to 4G with the company investing aggressively-potentially ahead of time-to create a state of art network

Reliance Jio will have to hike tariff for monetising its Rs 2 trillion investment in 5G network, telecom sector analysts have said.

“With significant investment likely by telcos in 5G over the next 1-2 years, we see an increased probability of a tariff hike to ease the free cash flow impact, and continue to expect this to happen before the end of CY22,” Goldman Sachs said in its report.

On Monday, Reliance Industries Limited chairman Mukesh Ambani announced the rollout of 5G services in key metros including Mumbai, Delhi, Kolkata and Chennai by Diwali. The company will invest Rs two