Telcos Hike 2G Tariffs And Halve Validity, Raising Revenues Or Boosting 3G Usage?

Most of the prominent telecom players have pulled a double whammy on their users who are availing 2nd Generation (2G) internet. Not only have these companies halved the validity of the Plans, but also jacked up rates.

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Airtel, Vodafone and Idea, who collectively control about 2/3rd (53%) of the Indian Mobile Subscribers have all opted to increase charges of plans pertaining to 2G Internet Access. Additionally, these enhanced-value packs will have lesser validity. Essentially, the quantum as well validity periods have been restricted.

Airtel, the leading telecom player in India now offers 1GB Data at Rs. 156, which was earlier Rs. 125. The same, in case of Idea, now costs Rs. 154. Though the validity of these plans remains 28 Days, the rates are about 25% higher. Additionally, Airtel’s famous Rs. 98 Internet Plan now has a curtailed validity of just 14 Days, which was earlier of 28 Days, plus the quantum of Data allowed, is halved. Essentially, subscribers will now have to pay double and will only get half of what was entitled earlier.

Mobile Internet in India has been going through a phase of change. Additionally companies have working hard to augment the next generation of Data intensive platforms, namely 3G and soon to be made available, 4G services. While 3G is at least 10 Times faster than 2G, 4G based mobile internet, is 30 Times faster than even 3G.

In retrospect, 2G internet now appears highly outdated and obsolete. Besides, companies like Reliance who will bring forth 4G services are allowed to offer All Telephony Services like Voice, SMS, Data, Video Calls and MMS on a singular 4G platform. They won’t need to maintain networks running on the decades old 2G network.

Judging by the two separate instances of raising tariffs, it could mean that companies are now slowly withdrawing themselves from the 2G Space as it has continually proven to be a bottomless money pit. What better way to dissuade people from using 2G Internet than making it expensive. What do you think?

 

Image Credits: tcl

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