Network and spectrum are pretty expensive things. Huge costs go in deploying networks. An operator who is ready to incur costs expects good return on investment.
But the costs are so huge that it takes years for an operator to look at profits. Also they cannot charge heavily for service because they have incurred huge costs. So there is a trade off between what we expect and what we get.
Typically, voice networks are pretty much controlled. Each voice call is given a radio channel and if all the channels in a certain area are occupied user starts feeling the congestion. This was one of the challenges with the voice network that service providers used to face or still facing. Now with data coming in, that challenges have increased many folds.
Data is a best effort service. That is at a given point of time, a user doing data from his mobile may consume more than one channel. Since spectrum is limited, networks easily get choked up. Thanks to 3G, since voice calls are on one radio technology and data on other, at least my voice calls are safe.
Why are unlimited plans a distant dream? Its simple economics! More you give, more they ask. It has been result of many research’s that 5-10% of subscribers that use unlimited plans consume 70-80% of network bandwidth. This certainly is not fair. Assume that in a give region there is geek sitting and consuming all the bandwidth, doesn’t our insanity levels go high? AT&T had burnt its hands with unlimited plans. First the networks are congested, next subscribers are not happy and the result no unlimited plans. Even if the plans are advertised “unlimited”, they are not “truly” unlimited.
The wide variety of mobiles that are available in the market is also adds up to the network congestion. The mobiles should be carefully designed not to burden the network with signaling. With so many applications running on mobile devices the connections are always up and resources are continuously consumed. This is for the exact reason why IPhone developers where give crash course by AT&T.
It’s nobody’s business to tell subscriber how to use what is given to him. But its time users get smart and start utilizing the resources efficiently. Instead of burning the networks with downloading movies on mobile phone why not switch over to wifi? Just a thought!
More to follow! Stay tuned.
Juned Vazifdar April 8, 2012 at 10:00 pm
Excellent write up, many kudos. You are doing a great job, I think its our Indian mentality to (mis)use something that’s unlimited. I guess in that case operators aren’t left with any option but to give users FUP (but I also feel that service provider should term it as “Unlimited” with it has fair usage policy behind it).
vigrem May 5, 2011 at 12:02 pm
So I Guess that Mobile Service providers may go up with rates & plans for the Data Usage…
Anurag Bhatia February 3, 2011 at 2:00 pm
Nice article.
See mobile networks, 3G, is all about last mile connectivity. Surely that’s one of bottle necks due to limited spectrum apart from that big problem remains with content hosting in India. Over 80% sites you visit are yet not hosted in India, and data is transfered from expensive submarine cable networks. Based on data I have – I would say it’s not that submarine cable system is bottleneck, but considering the expensive development of such cable systems – carriers won’t simply give up bandwidth for cheap.
They apply demand-supply equation and feel it is good to charge more for more bandwidth and giving it less customers who are “willing” to pay for it (mostly corporate plans). Apart from the tarrif of niXi is super big joke for India –
Good Luck India!
Ganesh July 26, 2010 at 11:19 am
@Ganesh Srinivasan
It is true that, mobile networks offer much lower bandwidth compared to wireline BB networks. Simply put, wireless technology is new (relatively). Wireline BB (DSL/Cable) are older and also, with wireless tech lot of risk for the operators. Risk of a new technology not taking off well (like EvDo in India). But wireless are catching up very fast with their wireline counter parts! Hope, the technical barriers are crushed sooner
@Santosh
And finally thx for writing this article
Ganesh July 26, 2010 at 10:46 am
@jitendra Indave
Yup. Instead of squeezing customers, they need to provide more quality.
@rashna
Airtel is among the most arrogant companies. And 50GB @ 512 kbps speed for rs.500/month looks like a great offer to me.
But now I am enjoying a new ISPs offer which is UL downloads @ 1MBps and guess what the price would be? It’s Rs. 991 per month FLAT and includes all tax etc etc. But coverage is relatively low. Name is Wi5. It is available in cities and towns in tamil nadu (as far i know)…
@addy
Yup!
Santosh July 25, 2010 at 4:08 pm
@All
Thank you for the comments. The article are was aimed at bringing the pain that goes into making a network from an engineers perspective. I do agree with most of you that the sevice provider startegy should change and they should start treating customers as gods. I believe operators have already realized the fact and are treating their niche customers well.
Its time they start being transperant about the services. Hope number portability will solve the woos.
Regards, Santosh
Udayan July 25, 2010 at 9:43 am
As per the blogs go in this article,very few are in favour of the operator…Quite naturally..I can only add there is no need to shed tears for these cheaters…I have got some harrowing experiences in this connection..I have 5(Five) Reliance GSM connections and all those are used feebly as the network is..I don’t know wkich class it belongs to..!!!!!!!Just yesterday,I sat with all those SIM cards to get a picture regarding balance..To my utter surprise,I found that around 30-60 rupees have been deducted from each of the SIMs..And aur to aur..one of the SIMs have entered the negative balance zone..And painstakingly when I got the chance to talk with their dirty,nonsense C.C. Exec(and supervisor),I came to know that I have activated Caller Tunes..They are so well trained that you will never ever get your points right..And as such I went on to loss around 250 rupees from my balances which are at some times becomes really hard..Now they can cheat someone like to the tune of this amount..God knows how much they are earning through these fraudulent ways…May god forgive these dirty people..This may however sounds off the track in relation to this article,I would suggest not to recharge with hefty amounts which lure with extra talktime..By robbing through this “daily plans”–one can certainly offer so-called Unlimited plans..
Ganesh Srinivasan July 24, 2010 at 1:17 pm
@Karthik Kumar
I didn’t know about offer by MTS, thanks for your info
Gaurab July 24, 2010 at 12:01 pm
Very good article indeed. We now really need this awareness. Thank you
Karthik Kumar July 24, 2010 at 11:12 am
@Ganesh Srinivasan
Ganesh nice point that you have made…for your information MTS is giving unlimited plan like this only…That’s 3.1 Mbps till 15 GB and 144 Kbps after that in CDMA…I hope 3G GSM operators will also bring such plans when they launch data plans..
Ganesh Srinivasan July 24, 2010 at 10:06 am
The truth is bandwidth availability is limited and the number of consumers using for data downloads [especially movies, songs, youtube and the like] are more. Hence on account of few customers, many other customers suffer [may be 80 20 rule applies here as well]
As a result, the speeds vary drastically and most customers suffer
In landline based broadband – like Airtel, BSNL and few others, it is an unlimited download & upload plan but the speeds vary – for example 4 Mbps upto 4 GB and beyond that unlimited at 256 kbps
Technically if such a plan is feasible on landline networks, similar should be feasible on mobile networks as well – if any tech pundit thinks that such a scheme is not feasible on mobile networks [but feasible on landline networks], I invite their views to explain, along with reasons understandable by layman
Can telecom companies think of implementing similar plans on mobile networks?
Then accordingly, each user will choose a plan suitable to him / her
There can be say five price slabs with Rs 100 or more as difference between plans – the top most price slab offering 3.5G speeds for say upto 10 GB a month and beyond that at 512 kbps. The lower most price slab offering EDGE speed for say 2 GB and beyond that at GPRS speeds
India is a price sensitive market and the word FUP is not liked, instead Unlimited is the nice word and is very much liked. If unlimited plans with speed slabs are implemented instead of using FUP, most users will like such offers
It will also be a fair play for all – as the heavy users get limited bandwidth beyond a point allowing other users to get fair bandwidth. Also the telecom companies will effectively use their spectrum / bandwidth / capacity built
If such plans are implemented, the operators with good capacity build up will automatically get more subscribers and the poor infrastructure companies will automatically get weeded out
With more and more people using smart phones, iPads and the like [one Indian company Olive is launching iPad like 3G tablet in August], unless we have plans with speed slabs, the problems will remain – 20% of customers will enjoy at the cost of 80% of customers
Rudradeep Biswas July 23, 2010 at 11:39 pm
i am presenting some offers which tells how to utilize netwrk
1. tata docomo’s lifetime zero rental offer of night onnet 1p/4sec
2. bsnl broadband’s night unlimited plans
3. cable broadband operators offer night speed upgrade plans.
addy July 23, 2010 at 11:35 pm
@Ganesh
I agree with you..actually this is the truth.. if companies are not making profits in india as he want to say.. then y are there so many players in GSM and CDMA both the sectors.. coz the fact is companies are making huge profits with their low end technology..
rashna July 23, 2010 at 7:02 pm
@Ganesh
excellent reply ganesh. true for airtel… i had said the same to the airtel top management through email. but these arrogant companies (airtel, vodafone etc) will straighten up only after introduction of mnp.
coming to the subject, instead of offering unlimited 512 kbps @ say rs.500/month, one could offer 50GB @ 512 kbps speed for rs.500/month. the cost of per GB is around rs.5 for telcos.
with such balanced and fair pricing and offer everybody is happy… and no one abuses the network. but the problem with limited plans is that telcos price them 100-1000 times more than actual price…. but don’t mind offering the same through unlimited plans for reasonable price. if they offer like above, the resources are optimally utilised and everyone is happy.
hope the telcos understand and implement this.
jitendra Indave July 23, 2010 at 6:56 pm
@Ganesh
Yess !! Ganesh I m agree with u and very much impressed with your comment. Broadband (Data service) is backbone of the development in this modern age if can’t think progress without it. For that from GSM operators to broadband operators need to supply quality service without crying…as they have already grabed what they wanted to …
Ganesh July 23, 2010 at 6:41 pm
Good one. But here is the hard truth.
Operators NEVER upgrade their equipments in line with demand! In other words, once they have made an investment, They will squeeze as much revenue as possible instead of investing more.
For example:
Airtel spends 20 lakhs to get a tower installed, 1 year ago to serve 200 customers. But at present, there are more than 500 customers, but the same BTS equipment (& same backbone connection). They would have recovered the 20 lakhs investment in about 6 months. From their perspective, their investment has returned 6 months ago and whatever comes after that is revenue. Even if they loose 100 customers, they still make profit.
So, if a company puts more emphasis on customer loyalty, then they will keep upgrading their equipment in regular intervals.
Moreover, before youtube, unlimited plans were only for torrents/downloaders (who consume huge bandwidth). But now youtube & the likes have the plates changed. Even a normal user can see lots of videos and consume about minimum 10 – 20gb per month! Moreover, the development of a nation depends on how fast the broadband is…. That is why Obama is upgrading broadband networks in US and 1MBps internet is a fundamental rite in finland. If the connection is capped, then it will not serve the purpose!
-!GS!- July 23, 2010 at 6:35 pm
@jitendra Indave
kon si company hai 4g ki uski ?>?
NESA July 23, 2010 at 6:32 pm
Santosh !!!!
A good article for people of all functions of Telecom…..Sales , Product , Network….there should be a proper co-ordination for having a particular product do well.Unlimited hota toh hum behtar karte…apne koi bhi product unlimited naahi hei…etc etc….so a telco proff should first understand the basic…”Customers are always the Boss and will never be satisfied”…
Good article santosh
jitendra Indave July 23, 2010 at 6:09 pm
mukesh already kud gaya hai bhai oh bhi 4G technology ke sath..oh khiladi person hai zab dono ka court war chal raha tha tab tikona digital network nam ki wi-fi broadband service denewali company launch ki aur logo ke nazar me naye aur anil ke sath kiye gaye contract ullanghan na ho isliye usne CEO ko chair person (Prakash bajpaayi –Jo Reliance Comunication CEO aur President rah chuke hai )bana diya …Haala ki yeh baat aur ke tikona ki chair person ke list me Mukesh ka kahi naam nahi dikhai deta..lekin sach maano to apne person ko pyade ke tarah use kar ke company chala raha hai
jitendra Indave July 23, 2010 at 6:03 pm
anil aur mukesh hi nahi abhi to aur naye khiladi maidan me aa sakte hai ? Zara sochiye zanab yeh television banane wali company ko kya suza jo lower teriff war chalu hone ke bawjood maidan me kud gayi ? kuch to fayda dikha hoga na ?
waise yeh to abhi aagaaz hi hai..aur bhi khiladi aa sakte hai maidan me
-!GS!- July 23, 2010 at 6:02 pm
@rajiev
is dat true..?? kon si company laye ga wo ??
Webly Gomes July 23, 2010 at 5:59 pm
nice article. Something different.
Thanx santosh.
al33m July 23, 2010 at 5:55 pm
good article….but why operators use the word UNLIMITED when they don’t provide it.
rajiev July 23, 2010 at 5:53 pm
tabhi anil ambani ke baad mukesh ambani bhi telecom mein aanaa chahta hai
BOSS July 23, 2010 at 5:46 pm
Hats Off Santosh… Good Article:)
jitendra Indave July 23, 2010 at 5:29 pm
@rishi
Can you tell me which companies are running out of profit ? How many of them got bankrupted so far ?
buddy customers are still at their own places. But If companies doesn’t want to get adjusted..then what customers can do ? If he is not capable to pay high phone bill then should he throw away their handsets ?
Today when India is making it’s identity at global level their is big hand of the telecom sector…Even telecom companies have some hope that this is the only field where they can reach top..just think !! even there is teriff war going on why Videocon, Uninor E salat etc jumped in…?? In short they know what subscribers want , they can fulfill.
rajiev July 23, 2010 at 5:19 pm
operators r bussiness man first, after that they think about customer
rishi July 23, 2010 at 5:13 pm
@common man…
yeah looking at the economics point of view its a business cycle…
but because of the profit they make here its companies like airtel who can afford to buy out other telecom companies (zain telecom).. thus giving endless opportunities to us Indians to make our mark on a global level.. thus blindly saying that they are working for profit only is biased…
I dont support the idea that one should pay exorbiant rates so that they can enjoy life while we struggle but one shouldnt go around complaining that tariff validity is low, expected 1000min’s but only 500 mila…
If u want good service then pay for it too…
jitendra Indave July 23, 2010 at 5:12 pm
@ven
I am agree with your bottom line..more ever the truth about the operators’ condition since decade CommanMan has discussed in impressive way. Just, in one sentence yaar its part of economy and business. Why should subscribers get suffered every time. In past there was their own profit making policy and they worked on according to the same. As result they got so much revenues income. And now when there is golden moment for subscribers at that time instead of fulfilling their needs they are asking for pietyness ?
ven July 23, 2010 at 5:03 pm
@ santosh
Its’ a nice thought to use the mobile internet sparingly. A telecom provide is responsible for this not us (consumers). A telecom operator should sell what it can and not what it cannot???
Bottomline: A consumer must get for what he pays.
Santosh July 23, 2010 at 4:41 pm
@CommonMan
I think this for the exact reason “why jagoo grahak jagoo” advert is telecasted on doordarshan. “Subscribers wake up”
CommonMan July 23, 2010 at 4:41 pm
remember even airtel & idea is doing for their survival but not for the customer benefit. We must not forget the days when Hutch & Airtel with some conspiracy increased the rates. (around in 2007/2008). Yes consolidation will happen and later they may again increase the call rates.
ITS ENTIRELY AN BUSINESS CYCLE & PART OF GAME
doc_dip July 23, 2010 at 4:41 pm
we indians are always think what and how much more and more we can get from giving less and lesser.THAT IS TRUE FOR BOTH CONSUMERS AND NETWORK provider.both side are in race how much they can SUCK from each other’s pocket.IN THAT RACE MOST IMPORTANT THING GOT MISSED.
instead scraping unlimited plans(like yanki AT&t) and instead giving huge unlimited plans(like now tata,rel give)..we can use some innovative ideas and thought by which some middle path will appear…
1st)network providers should calculate meticulously maximum how much hours in a day average the UNLIMTED PLAN USERS are using–this is a little audit among ongonig UNLIMITED users ONLY not the others…..and certainly they will find that these unlimited users are’nt connected 24hours a day(as it is not physically and networkally possible!!)..suppose they on and average uses 6 hours a day(i consume this much on my unltd plan,,other unltd users consume much less hours)……….and then they should give 30multiply 6hours in a month in thieir so called unltd plan means 180 hours a month….in that way a bulk of hours(3 times than 180 hours) will be saved from network providers pocket and we’ll become a very very little conscious about our voracious need..
Raghu July 23, 2010 at 4:37 pm
@CommonMan
exactly Docomo does not improve the network and keep launching some offer or tht other
CommonMan July 23, 2010 at 4:34 pm
Yes we must not congest network. Then remove the work ‘unlimited’ and tell the customer beforehand that this is limited GB plan.
(operators must not use words like ‘FUP’ in T&C which is fair to them). A normal layman doesn’t about these congesting issues. The operator asked him to pay some amount to use its services. He paid it., thats all.. Its upto operator to cope with these issues. Is it fair in asking customer to pay Rs.1200 and use only 15gb 
Now-a-days no operator is caring about ‘congestion’ issues., they are just giving freebies without upgrading towers. (see DOCOMO, its giving a new offer each day but the network without improving the network)
Madhumita Sen July 23, 2010 at 4:30 pm
In an open economy, consumer behaviour is driven by market. A major shake-off is in the offing !
rishi July 23, 2010 at 4:27 pm
@common man dude remember its because of companies like airtel, idea, reliance u r able to talk on ur mobile phone… If they charged a premium on the tariffs they also were providing excellent services.
All these new ones are just in to cash on the boom… Wont be surprised that in the next 10yrs only 3-4 remain in the market.. and i can bet a million that it will be companies like airtel, idea, reliance who will survive…
Santosh July 23, 2010 at 4:21 pm
@All
Thanks for the comments. Do keep reading, there is a lot coming in this direction.
rajiev July 23, 2010 at 4:20 pm
santosh , good work
Santosh July 23, 2010 at 4:20 pm
@CommanMan
I am with you on this! Telecom operators are making money and there is no doubting it. The debate is more towards the utilization of resources. Spectrum is limited, if you charge 100Rs or 1000Rs it will be the same. Since you are paying 1000Rs does that mean you should consume the whole network and leaving nothing for the guy who paid 100Rs? Again subscribers cannot be told how to use the package given to them, but it can be controlled.
Sandy July 23, 2010 at 4:13 pm
Nice article.
Somebody is thinking out of the box.
All the Best.
CommonMan July 23, 2010 at 4:12 pm
The article seems more biased towards operators then customers
There is no need to show pity on operators. Because they almost looted the customers upto 2009 until new operators like DOCOMO came into picture. Leave the new operators like uninor but the old operators are already in safe position. In 2008 Bharti’s yearly net profit is double to TCS’s net profit and it is about to breakeven. With this money now its expanding into whole africa. From the past one year its Net profit is only declined marginally (its same with IT companies during recession). Take case of Hutch/Vodafone. Hutch just invested some 600 mn$ and got around 14 bn$ in a span of 8-10 years. Every business will have a cyclic procedure and decline is one of the cycle (which telecom companies are facing now).
Telecom towers installation is one time activity & maintainance cost was brought down a lot now-a-days.
Talk about the hurdles of customers. You are taking 1200 p.m and giving 2 MBPS speed but with 10GB FUP. With 2MBPS even for a normal person 10GB will exhaust in a week then they had to pay 2/MB (means 2000/GB!!!)
rishi July 23, 2010 at 4:11 pm
interesting article…
downloading movies through gsm network is a bit too much to ask for considering the amount of spectrum avaliability..
Raghu July 23, 2010 at 4:10 pm
@Amit.G
exactly Operators get Profit only they will give Good Quality network.
Amit.G July 23, 2010 at 3:55 pm
Very good article, its true even we should think abt operator’s profit. its really unfair to expect more by paying less, Always remember OPERATOR’S PROFIT=BETTER QUALITY SERVICES
Nikhit July 23, 2010 at 3:51 pm
Great article, a lot of good points made!