Sunday, June 26, 2011

3G spectrum auction good for Consumers?

Lot has been talked about India's 2G spectrum corruption. And the prices at which 3G spectrum were auctioned. 3G auction fetched government huge amount of revenue. Do these high 3G prices justified? Did Indian telecom companies over estimated 3G potential in India? Possibly YES.

Look at what 3G service cost in India - higher prices. Airtel best 3G data plan costs Rs.750 for 2GB of data. Canada's Rogers sells 2GB of data for 15 CAD i.e Rs.660. Hey wait, weren't we supposed to have the cheapest telecom prices in world. So will Indian consumers buy such services who are already used to monthly charges of less than Rs.500. Highly unlikely. How many we knew use 3G? None, a friend of my colleague does and few more colleagues use 3G data card but on their mobile phone.

Unless telecom companies trick younger generation to buy expensive 3G plans like bundling with iPhone, they are gonna have hard time recovering money spent in 3G auction. As for me, will buy 3G when prices fell less than Rs.500.