The Telecom Regulatory Authority of India will suggest measures to ensure that high prices of 5G handsets do not impede digital connectivity and literacy, Trai chairman P D Vaghela said on Monday. To address the issues related to affordability and digital inclusion, the regulator will come out with a consultation paper shortly, he stated.
“Prices have come down drastically for 2G, 3G mobile phones. 4G phone prices have also come down, but the prices of 5G phones are very high and availability is also an issue,” Vaghela said at the India Digital Summit. “We are planning to come out with a consultation paper to comprehensively address and look at further strengthening digital inclusion in the country,” he added, without giving any specific details.
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Though 5G services have been rolled out in the country and there is an increase in shipments of 5G smartphones, affordability continues to be an issue. Currently, the average selling price of 5G smartphones is around `32,000. Analysts maintain that the availability of these devices in the sub- Rs 20,000 category needs to go up.
It’s not clear whether the regulator will recommend some kind of a subsidy model through the Universal Service Obligation Fund for rural areas. Analysts said that such issues will only be clear once the consultation paper is floated and stakeholders’ consultation takes place.
In the last five years, the average selling price (ASP) of entry-level smartphones has also risen nearly 20% to over `7,000 due to increased component costs, supply-side constraints and currency depreciation. An entry-level smartphone that was priced at Rs 5,991 in 2018, was available at Rs 7,126 in 2022, according to data from Counterpoint Research.
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In 2022, the ASP of smartphones hit a record Rs 18,000, rising 18% y-o-y, according to data by International Digital Corporation (IDC).
The Trai chairman also talked about crucial governance issues which need to be addressed over the next 25 years. Some of the issues mentioned by him include, revamping of digital governance infrastructure, challenges arising out of convergence and reduced investment cycles due to technology disruptions.
Identification of appropriate technologies, boosting local manufacturing of digital equipment, keeping technology at the core of policy formulation, strengthening cybersecurity, bringing in vibrant privacy law and protecting citizens from spam and frauds, are some of the other issues.
“The road ahead is full of exciting challenges and opportunities and one thing is certain that the future of India rests on our ability to embrace new technologies, respond to technology disruptions and seize the right opportunities,” Vaghela said.
