• Welcome to OnlyTech Forums
    An online community for the tech enthusiasts!
    Log in or Register

Mobile data tariff in India is expensive, needs 75 percent cut: Study

rahul1117kumar

Contributor
Joined
21 Jun 2013
Messages
10,364
Reaction score
11,054
Data tariff in India offered by telecom service providers is not cheap. In fact, it is pretty steep even by developed nations’ standards, according to a study. To push usage across the country, telcos need to slash data prices by 75 percent. A study by Analysys Mason says that an average user of data in India spends 2.6 percent of her/his annual income to consume 1GB of data per month which is way higher than the average of 0.2-0.4 percent of the annual income that is spent by their counterparts in developed markets. It underscores that in terms of affordability, an average monthly increase in data usage to 10.2 GB at a discounted tariff of Rs 57 per GB, with 10 percent contribution from voice, translates into a total increase in monthly average revenue per user of Rs 645.

The study has come against the backdrop of a price war among telecom operators on data, as Reliance Jio that has pumped $21 billion into its new telecom venture, is now gearing up for the commercial launch in the near future. “India’s current data tariff (based on current average revenue per GB of Rs 228) is significantly higher than that of relevant developed and developing countries, when adjusted for the per-capita incomes to normalize for affordability levels,” says Analysys Mason. “India’s data tariffs (price of 1GB pack) as percentage of GNI (gross national income) per capita is currently 2.6 percent — whereas, on an average, the developed economies’ data tariff, as a percentage of GNI per capita, currently stands at 0.4-0.5 percent,” it adds.

“Our analysis concludes that a 75 percent cut in data tariffs (average revenue per GB of Rs 57) alone could increase the user base to 645-667 million SIMs, and the level of monthly data usage to around 4.2-4.3 GB per SIM in 2019-20,” the study further said. Interestingly, the study says that telecom companies won’t actually lose out by lowering tariffs. The study does not name any Indian telecom operator, but says while 3G capacity in India has been improving rapidly, that in the case of 4G has actually exceeded demand for the first time, thanks to the new entrant’s (read Reliance Jio’s) extensive network roll-out.

“From a network availability perspective, the abundance of 4G supply could change the consumers’ consumption behaviour for the first time in the country, as subscribers get access to higher quality high-speed broadband networks.” Another plus point which consumers can look forward to is in terms of devices. The study says with rapid convergence of 3G into 3G+4G devices, and a steep decline in their prices, the availability and affordability will stop being a barrier to in the coming years. But it does not have much to say on content. It finds that even though this segment, particularly short-format videos, has driven the growth in mobile data usage in India, the availability has been a challenge, especially among the non-English speaking masses.

“Google estimates that next 300 million Net users in India will come from non-English speaking population. However, at present, the supply is heavily skewed towards English content, which is of little relevance to the next wave of Internet users in India.”

http://www.bgr.in/news/mobile-data-tariff-in-india-is-expensive-needs-75-percent-cut-study/
 

rahul1117kumar

Contributor
Joined
21 Jun 2013
Messages
10,364
Reaction score
11,054
yes Sarkar bro rightly said, even the data tariffs reduced in last few days was due to jio effect, if jio had not come into the market they won't have reduce even a single penny.
 

Sarkar

Member
Joined
1 Jun 2013
Messages
11,003
Reaction score
11,364
rahul1117kumar said:
yes Sarkar bro rightly said, even the data tariffs reduced in last few days was due to jio effect, if jio had not come into the market they won't have reduce even a single penny.
Technically Airtel has not reduce anything as we have to recharge for 1 year which translates to ₹124 per month then again we have to pay ₹50 per GB so it translates to ₹174 per GB per month which is the current price of per GB in wb circle. So no savings.

Still they got very good publicity thanks for the news media some of them reporting 80% savings, but actually no savings in reality [emoji19]
 

Optimus_Prime

Contributor
Joined
5 Oct 2015
Messages
7,385
Reaction score
10,978
Sarkar said:
Technically Airtel has not reduce anything as we have to recharge for 1 year which translates to ₹124 per month then again we have to pay ₹50 per GB so it translates to ₹174 per GB per month which is the current price of per GB in wb circle. So no savings.

Still they got very good publicity thanks for the news media some of them reporting 80% savings, but actually no savings in reality [emoji19]

suppose I need 5GB per month.
now for year I have to pay 655*12= ₹7860
and 1498+ (51*5)*11+51*4 =₹ 4507
so how much savings bro?

 

Optimus_Prime

Contributor
Joined
5 Oct 2015
Messages
7,385
Reaction score
10,978
piinku1 said:
Bro why should I pay for 5gb when I need 1 GB.

I said 'suppose'
let, u need 1 GB.
how much u will pay for year?? ₹255*12= ₹3060
how much u will pay in this new scheme?? 1498+51*11=2059
savings =(3060-2059)=₹1001 over 1 year!.
here u should know a golden rule of economics is that big investment big savings.... small investment small savings.
 

Optimus_Prime

Contributor
Joined
5 Oct 2015
Messages
7,385
Reaction score
10,978
Sarkar said:
Technically Airtel has not reduce anything as we have to recharge for 1 year which translates to ₹124 per month then again we have to pay ₹50 per GB so it translates to ₹174 per GB per month which is the current price of per GB in wb circle. So no savings.

Still they got very good publicity thanks for the news media some of them reporting 80% savings, but actually no savings in reality [emoji19]

and yes!! who tells u in WB , 1GB 3G is ₹174?? its ₹255 buddy. 174 e 700 mb 20 din. jodi 1gb hoi amio korbo. bolo tahole

 

Sarkar

Member
Joined
1 Jun 2013
Messages
11,003
Reaction score
11,364
Optimus_Prime said:
and yes!! who tells u in WB , 1GB 3G is ₹174?? its ₹255 buddy. 174 e 700 mb 20 din. jodi 1gb hoi amio korbo. bolo tahole
This tells me bro [emoji19]

4beb40aab81dcb66d22e7177b906a879.jpg
 

Sarkar

Member
Joined
1 Jun 2013
Messages
11,003
Reaction score
11,364
Optimus_Prime said:
suppose I need 5GB per month.
now for year I have to pay 655*12= ₹7860
and 1498+ (51*5)*11+51*4 =₹ 4507
so how much savings bro?
BTW you need 13 packs instead of 12 for whole year.

What if I need 20GB or more ? Isn't it better to switch to BSNL then?

So These are all special cases. Point is they are not reducing 1GB price.
 
Top Bottom
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock