2G-Based Internet Subscribers Could Go Off the Scene in India Over the Next Decade: CMR

Reliance Jio’s entry into the Indian market was a disruption in many ways. The 4G-only telco changed the orientation of telcos from voice to data. CMR now predicts that 2G-based internet subscribers could go off the scene in India over the next decade, and also says their projections indicate that by the first quarter of 2020, India would have zero subscribers using 2G internet services.

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“In the pre-Jio era, the decline in wireless narrowband users was taking place at a quarterly average of 3% that got spurred four times after its entry. Had the decline been continuing at 3% quarterly average, the forecast suggests 2G based internet subscribers could go off the scene in India over the next decade,” said CMR India in a press statement.

Technology adoption and market acceptance would have propelled it signing off the last subscriber using narrowband wireless internet by around 2022, assuming 2G services would continue beyond 2020, it further added.

After Jio’s entry, the projections drastically changed and they now indicate that by the first quarter of 2020, India would have zero subscribers using 2G internet services. This advance is because of the exponential growth in the decline rate after Jio on the scene, which has been 12% average every quarter.

Also, Jio stirred the market with a 4G-cellular capability feature phone. It’s also expanding the 4G cellular capability by bundling offers with various entry-level smartphones. With all these moves, the pace towards 4G is becoming the default wireless internet access is on the rise. “This translates to effectively all wireless broadband users accessing the internet over broadband marking not only end with the addition of narrowband wireless subscribers but also increasing the declining rate,” added the report.

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Besides the 4G handsets becoming affordable, the declining prices per GB of 4G data and penetration of services in Tier 3 cities and rural geographies of the country is only going to further expedite the process of all subscribers accessing the internet over wireless to be on 4G or broadband.

CMR is predicting that all the above changing technology and market dynamics will advance the projected zero narrowband wireless (2G) internet subscribers by 2-3 quarters. This means India would become all wireless subscribers accessing the internet using 4G technology and mark end of the era of narrowband wireless internet users. Though the usage of narrowband wireless internet will not go as certain IoT applications like smart parking could efficiently work over the 2G infrastructure.

But to achieve this, operators shall have to focus on the 100 million existing 2G internet subscribers that existed as of September 2017. Telcos need to implement an upgrade program for them as per CMR, and it also said that these entry-level smartphone bundling offers might not suffice.

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31 Comments on "2G-Based Internet Subscribers Could Go Off the Scene in India Over the Next Decade: CMR"

 

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Adil Wadia
January 11, 2018 11:02 pm 11:02 PM

Two years from now even the basic feature phone will be Volte. When 4g achieves critical Mass 2 G and 3g will become obsolete. Adivasi in my village are using Volte and Jio, that was unthinkable till last year.

Airtel User
January 12, 2018 12:05 am 12:05 AM

Digital India.

Kiran Fernandes | Mumbai
January 11, 2018 6:34 pm 6:34 PM

When operators are getting lower and lower revenue from calling party pays, they’ll phase off 2g networks as it’ll be a burden than being profitable. So it’s a good thing. Time to put 2g in the grave by 2020 and 3g in the grave by 2025.

4g and 5G will be the future of Telecom in India. Time to keep away legacy technology and move forward.

saket kewate
January 14, 2018 12:46 am 12:46 AM

just reverse case.

2G in 2025

but 3g in 2019-20

Nikhil
January 12, 2018 12:14 pm 12:14 PM

2025? Are you serious? It should be wiped off a lot before!!!!!

Kiku
January 11, 2018 5:18 pm 5:18 PM

3G needs to die in next year or two & better B1 should be used for 4G, airtel & VOID has 10-15 MHz each in many circles.
There is no benefit to run 3G in parallel to 4G makes no sense. SINCE 2015 phones from Rs. 6000 have 4G compatibility MOREOVER since 16-17 all phone starting from Rs.2500 is 4G capable.
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FOR.. 2G give some time for low income people & for those who only depend on calls to switch to Jio Phone, I believe Jio should now bring down the price to Rs. 999 flat.

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