4G/5G plans are being hiked every year because of 2G customers

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Finance Mentor
abhishek012

4G/5G plans are being hiked every year because of 2G customers:

I have read some articles recently. Do you know, 4G/5G plan prices are increasing because the operating costs for providing 2G services are higher for telecom companies, and it's no longer profitable. So, by raising 4G/5G plan prices, they're recovering the operating costs of the 2G network.

Although Jio doesn’t have 2G, but Airtel and Vodafone increase prices, Jio also raises its prices.

I posted this because, help the 2G customers, helping them to get Jio's affordable 4G feature phones.

Jio is offering 1 year of free calling with phones priced between ₹700 to ₹1000 for MNP users.

If 2G customers don’t switch, telecom companies will keep raising plan prices every year. The minimum monthly recharge has already reached ₹200. People who keep a second SIM face issues, as they have to do ₹200 recharges monthly just for 1 or 2 SMS or calls.

Let me know what you all think in the comment section.

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Deal Lieutenant Deal Lieutenant
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Bro jio got no 2g still hiking price ,there only corporate greed behind these recent and all hikes ,they try to shift blame with excuses

Deal Subedar Deal Subedar
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Seeing this post from man of your intellect, Something has definitely gone wrong today. confused

 

If 2G customers could afford 4G phone and data they would have already switched.

 

On the contrary Jio is the one who raised prices first in all last price hikes. Jio phone is a way to capture 2G phone market by jio once you buy Jio phone you are locked in to Jio only where as if you buy any other feature phone you have option to switch between bsnl voda or airtel. So Jio knows this and that's why they offer their phone at cheap price.

Finance Mentor Finance Mentor
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I feel these are propaganda articles to get support to close 2G/ 3G.

The network operators are not able to milk non smartphone 2G customers like they do on 4G. Can't throw the unlimited bandwidth carrot to them. Yes this is the reason why they feel 2G customers are a burden on them. A simple 4G phone doesn't cost that much if a person wants to keep using same phone over the years. But some wouldn't want to get a 4G phone, as they are satisfied with what they have and does't want a smartphone which needs frequent charge and will use data for much of its requirements.

This is the reason why Networks had previously approached TRAI to shut 2G & 3G. Now that TRAI can't take an arbitrary unpopular decision, Network operators are lobbying and getting a public support for their cause. No wonder @abhishek012 is thinking the same, like most of all.

But do not think costs will reduce even if 2G goes away. This is in the interest of the network provider, nothing in it for us.

Disclosure: Just my personal observations. I have 2 mobiles on 2G, used as emergency devices or secondary phones. I am happy to recharge 201 for 97 days of active sim. After this lobbying and 2G closure, I won't give more, but will close these sims.

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Deal Lieutenant Deal Lieutenant
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Bro jio got no 2g still hiking price ,there only corporate greed behind these recent and all hikes ,they try to shift blame with excuses

Finance Mentor Finance Mentor
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If Airtel or VI raises their prices, Jio will also increase theirs but will keep it lower than Airtel or VI.

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Deal Cadet Deal Cadet
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This time Jio initiated tariff hike than followed by VI and Airtel ... There is no stopping in rise of tariffs in future also , profit and ARPU they need and due to  necessity people have to remain stuck with it ... No choice No option , also there won't be any new player will be coming to telecom sector due to saturation , Takeover might happen if BSNL and VI sinks in near future 

Finance Mentor Finance Mentor
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That’s not how it works. Companies have to inform TRAI one month in advance about any price hike. Jio, Airtel, and VI are all aware of the planned price increases. It seems to us that Jio raised their prices first.

But they find out a month in advance when they inform TRAI.

@gakarshit 

@runningfast

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Deal Newbie Deal Newbie
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Jio doesn't have 2G but lavish parties to cover for 😜

Deal Subedar Deal Subedar
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Seeing this post from man of your intellect, Something has definitely gone wrong today. confused

 

If 2G customers could afford 4G phone and data they would have already switched.

 

On the contrary Jio is the one who raised prices first in all last price hikes. Jio phone is a way to capture 2G phone market by jio once you buy Jio phone you are locked in to Jio only where as if you buy any other feature phone you have option to switch between bsnl voda or airtel. So Jio knows this and that's why they offer their phone at cheap price.

Finance Mentor Finance Mentor
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Yes, but in all the articles I've read, most are comparing 2G users with smartphones.

2G users cannot afford smartphones, which is why they are not switching to 4G.

Airtel's 2G users are already paying Rs 200 monthly. Jio's plans are cheaper than Airtel/VI. Jio MNP users some location get 1 year free calling and 4G feature phone price just Rs700 to Rs1000.

And as I mentioned earlier, since TRAI requires plans to be informed one month in advance, it doesn't matter who raises their prices first, Jio or Airtel. They decide a month ago. It just seems to customers that Jio raised their prices first.

Benevolent Benevolent
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Unnecessary speculation. Capex on 2G infrastructure was stopped years ago. Jio has now decided to stop further capex on improving 5G infra as it's not being adequately monetized. Does that mean because not enough 4G users are switching to 5G is the reason behind the most recent price hike burdening 5G users in particular? Even if all 2G users switched to 4G/5G tariffs will continue to be hiked at regular intervals. 

Finance Mentor Finance Mentor
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Minimum recharge will not hike.

Who knows, we will again get free incoming calls without any recharge like Jio is already offering.
Deal Cadet Deal Cadet
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so socialism ? rich paying for the poor?

Finance Mentor Finance Mentor
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Ya, something like that.

2G is now loss making business for Airtel and VI, 2G network operating cost is not recovering from 2G mobile recharges.

That's why telecom companies hike minimum recharge plans + 4G/5G plans to recover 2G operating cost.

Airtel has around 100 million 2G users. Vodafone Idea has around 96 million 2G users.

There is a high chance we will again get free incoming calls without any recharge, if 2G network shut down like Jio is already offering free incoming calls without any recharges.
Deal Cadet Deal Cadet
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Haha ye kar lo pehle! Even if everyone switches to 4G, corporates are not gonna pause the rate hikes. Yaha koi kiss ka saga nhi. Very innocent of you to believe in such sob stories!

Finance Mentor Finance Mentor
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Ya, they will still increase the rates but minimum recharge plans under Rs99 and free incoming calls without any recharges will again available. If 2G/3G will 100% shut down.
Mobile Guru Mobile Guru
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2g is there not for user, its for devices that uses 2g like old card swipe machine, and its profitable for companies to run it that's why they didn't stop it otherwise they would, 

initially they even said they will stop 2g in 2020 when iuc ends but those only 2g supported machine gave them good profit to compensate, now even normal users r paying like 200 per month in 2g so its more profitable 

one day u'll say 4g is not profitable hence 5g price increasing without realizing whole india switching to smart meters which only supports 4g sim so no way 4g will be gone even after a decade 

Finance Mentor Finance Mentor
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Enterprise business is different. Telecom companies dnt need much spectrum to offer 2G services to enterprise customers.

Do you know, i think last year i read this news Reliance Telecom (Anil Ambani's Reliance) still offer broadband to enterpise customers.

Airtel and VI also buy spectrum from BSNL 2G to offer 2G services to enterprise customers.

Ya, many people dnt know that some places, BSNL 2G spectrum used by Airtel and VI.

Infact, in India many private companies offer fiber/broadband services but they dnt have any license from govt. How they operate ? they use BSNL broadband/fiber connection and their services is 1000x times better than BSNL Fiber/Broadband.
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Deal Cadet Deal Cadet
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2G customers are mostly deployed in automation / MMI.. like your GPS in your car etc. you cannot migrate them to 4g just like that.

Post Emperor Post Emperor
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high time close down the 2G/3G completely.

Finance Mentor Finance Mentor
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I feel these are propaganda articles to get support to close 2G/ 3G.

The network operators are not able to milk non smartphone 2G customers like they do on 4G. Can't throw the unlimited bandwidth carrot to them. Yes this is the reason why they feel 2G customers are a burden on them. A simple 4G phone doesn't cost that much if a person wants to keep using same phone over the years. But some wouldn't want to get a 4G phone, as they are satisfied with what they have and does't want a smartphone which needs frequent charge and will use data for much of its requirements.

This is the reason why Networks had previously approached TRAI to shut 2G & 3G. Now that TRAI can't take an arbitrary unpopular decision, Network operators are lobbying and getting a public support for their cause. No wonder @abhishek012 is thinking the same, like most of all.

But do not think costs will reduce even if 2G goes away. This is in the interest of the network provider, nothing in it for us.

Disclosure: Just my personal observations. I have 2 mobiles on 2G, used as emergency devices or secondary phones. I am happy to recharge 201 for 97 days of active sim. After this lobbying and 2G closure, I won't give more, but will close these sims.

Finance Mentor Finance Mentor
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I also agree costs will not reduce even if 2G goes away.

But i think minimum recharge plan will reduce and free incoming calls without recharges will back again.
Generous Generous
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multi level jumlaa

Deal Newbie Deal Newbie
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i use 2G on feature basic phone for security , as many apps on smartphone read SMS permission also 2G phone need less charging .mine last for 1 week on full battery

After corona every new news is bad news, credit card are getting devalued day by day , lounges need now high spend quarterly , 2G network is already getting closed 

seems like someone is puching too hard for 5G/4G when the work can be done on 3G/2G

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Deal Subedar Deal Subedar
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What are your sources?

Even if 2G costs more, it's a legacy network. It needs to be maintained as a fallback option.

5G is mostly not available uninterrupted if you live outside of 1 tier cities. Someplace don't get 5G at all.

4G though available in most places, still not available in some remote places.

I only get 4G, 5G sometimes in Jio. There are times even 4G is not available. During those times I have no network at all. These are times 2G comes as a saviour.

2G is a legacy spectrum that needs to be maintained as a backup in emergencies. Not just network unavailability, also Real emergencies.

You know what unnecessary and wasteful? 3G, it has always been unreliable and crappy. Just soon as you you switch to 3G you can feel your patience and soul draining away.

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