Telcos drop 3G prices to woo creamy layer | india | Hindustan Times
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Telcos drop 3G prices to woo creamy layer

Want to migrate to 3G services from 2G and worried over high prices? Here's some good news. Manoj Gairola reports.

india Updated: Jun 16, 2012 02:59 IST
Manoj Gairola

Want to migrate to 3G services from 2G and worried over high prices? Here's some good news.

Even though telecom operators paid about 10 times for 3G compared to 2G spectrum, the prices for 3G telecom services are falling drastically and fast approaching 2G services. The reason: 3G subscribers constitute less than 2% of the total mobile subscriber base of 930 million, thanks to high prices and insufficient infrastructure.

India’s largest mobile operator Bharti Airtel recently launched 3G services at the rate of 2G. Last month, India’s top http://www.hindustantimes.com/Images/Popup/2012/6/16_06_12-biz-01.jpgthree GSM mobile operators including Airtel, Vodafone and Idea slashed prices of their 3G services by up to 70%.

Third generation, or 3G, telecom services involve a data access speed of up to 21 Mbps compared with 236 kbps in case of 2G. At this speed, operators can offer high-speed Internet access, video calls and movie downloads on demand.
The price war began last month when Airtel slashed prices by 70%. Vodafone and Idea followed. Later, Reliance Communications also reduced prices.

"Operators are offering the price that consumers can afford. This will help in developing the data market," said Mahesh Uppal, a Delhi-based telecom analyst.http://www.hindustantimes.com/Images/Popup/2012/6/16_06_12-biz-06.jpg

In fact, consumers mostly use 3G for high-speed Internet connections. “I use 3G only for data,” said Osama Manzar, director, Digital Empowerment Foundation. “I am satisfied with its performance in the metros. Outside metros, the speed falls.”