Does India Need to Adopt Speed Based 3G Data Plans ?

By October 21st, 2012 AT 12:22 PM

In India, 3G services are yet to be a mass adopted technology unlike 2G is a massive hit. One of the reasons behind India’s poor uptake of 3G is internet speed over 2G network is still sufficient for web search, social networking and music download for many users. Operators and VAS companies are still to build to ecosystem apart from just internet for 3G services, which is lucrative enough for the consumers.

Our readers commented that speed capped 3G data plans (512kbps or 1Mbps) with more data at low rate can attract those customers are not happy with existing 2G internet. We have talked with some sources at different operators and most of them quoted about technical issues. It can be noted that CDMA operators – Reliance and MTS offer HSD/EVDO services in lite mode (at 256/384kbps capped speed).

Recently  in Bangladesh, state owned mobile operators Teletalk rolled out 3G services in Dhaka city region. Interestingly not a single plan is uncapped – all plans are capped between 128kbps to 2Mbps. Check out the plans below:

TeleTak Monthly 3G Data Packs

Many analysis have shown that current 3G data tariff in India is really cheaper than other countries, but if you consider India’s voice & data tariff on 2G which is one of the lowest in the world, 3G data tariff seems high. But why don’t 3G players bring such capped Internet plans (speed capping starting from 512kbps) with more bundled data at lower price?

Telecom analyst and Editor, TelecomTalk @SanjayBafna who believes in ‘Speed up India’ in terms of Broadband and 3G says “In present scenario “Customers Win – Industry Looses” policy which is going on from past 3 to 4 years can not go long for telecom industry as rock bottom 2G tariff makes everyone to bleed. Also current 1 GB without any Speed Cap or with full throttle 3G Speed for Rs.175 to Rs.250 (available with most of 3G operators) is quite affordable tariff in 3G segment and it can be around Rs.150 for 1 GB/30Days after the 4G services launched by some more operators next year. 3G operators who bought & invested a lot for 3G and still need to pay for Spectrum Usage Charges are looking for revenue to continue and expand the network, coverage area and sustain in telecom industry with viable business case.”

But still at a point most of Indian customers in 2 tier and 3 tier cities/towns are not willing to spend that money to getting high speed Internet (3G), While some users who want Quality of Services with all time up connectivity and high speed Internet, always ready to pay for it. What do you think? Please vote for your choice.


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