Dedicated, faster internet plans for concerts, influencers in the offing?

While India has one of the cheapest data tariffs in the world and some 4G and 5G tariff plans come bundled with unlimited data usage, 5G monetization opportunities have so far been elusive for telecom operators. 5G monetization will become increasingly critical to extract return on capital employed in 2025 and beyond, which is why telcos would look at such specialized offers.

“With the increasing number of international events, operators must address the challenge of data usage spiking at high-traffic events. Around 40% of data traffic at concerts is uplink-centric, with users live-streaming events. To maintain a seamless experience, operators are focusing on capacity addition, network densification, and possibly introducing differentiated connectivity models, like tailored network slices for premium users,” Jasmeet Singh Sethi, head of Ericsson ConsumerLab, told Mint.

Influencers are also willing to pay more for data plans that can guarantee them dedicated high speed for uploading content at events or concerts. Ericsson data, collected from surveying over 3,500 users in India across tier 1 to tier 3 markets and released last month, suggests that consumers are ready to pay 5-15% of ticket prices for high-speed data to seek ‘elevated performance’ at event venues. It also found that one in six 5G users was willing to pay 20% more than the current monthly mobile spend for assured connectivity at event venues. 

Globally, operators like Deutsche Telekom are exploring such models, offering premium services for journalists or cloud gaming with lower latency. These initiatives highlight how network slicing and premium experiences can generate new revenue streams for telecom operators while meeting diverse user demands.

“In the 5G era, network slicing enables operators to target various industries such as entertainment, healthcare, transportation, manufacturing, and creating new revenue streams beyond traditional data plans. We are just at the tip of the opportunity. The ability to charge a differential price based on unique requirements of each slice or use case is expected to go a long way in monetizing 5G services and uplift ARPU. Innovation in 5G tariffs is likely to create the necessary buzz among consumers and help to boost customer stickiness,” said Prashant Singhal, technology, media and telecommunications leader – emerging markets, EY.

Ericsson’s Sethi added that in India, differentiated connectivity offering tailored experiences based on user needs was being explored by Indian telcos. Some models that telcos can adopt may include charging additional fee on top of the tariff plan for guaranteed connectivity during an event, or subscription plans with enhanced uplink speeds for live streaming for content creators.

“I attended the Diljit Dosanjh concert recently and for the entire time, without the coverage, I wasn’t able to make urgent work calls, upload stories or even connect with my family or driver to coordinate, which was highly inconvenient. If the network plans are introduced at a concert, I don’t think influencers and actors, or for that matter anybody, would mind subscribing to it even at a premium, provided the premium is reasonable,” actor Siddharth Nigam, who has 11.4 million followers on Instagram, said.

Queries sent to Reliance Jio, Bharti Airtel and Vodafone Idea did not elicit a response till press time. Carriers may look to emulate plans that have been offered in markets like Singapore where, during Taylor Swift’s Eras Tour in March this year, Singtel brought out $7 5G Express Pass that gave subscribers priority access to 5G data and high speeds, which meant users could stream live, send or receive high-quality videos from the event. Private networks can also be leveraged for critical applications or events.

The kind of data traffic that telcos have to handle during events such as the Olympics or Taylor Swift concerts is massive. For instance, data being uploaded on apps at key moments of such events is higher than what users are downloading at that time. Since telecom network infrastructure is typically built to support high download speeds, the network requires upgrade to support high uploading speeds.

Connectivity tariffs that are built into the price of the concert ticket or other models such as revenue share with last-mile in-building solution providers may also come up. In-building solutions providers said that they were evaluating this segment.

“This space will evolve very soon. We have to see what is the monetization opportunity available for this, but we’re already building the stack for this. For instance, for in-house concerts or events inside hotels, like right now, is a big season for us, with many events for the New Year where we provide controlled solutions,” Ram Sellaratnam, group CEO and managing director at iBus Networks, told Mint.