5G Is proven to be unsustainable for Jio, Airtel and VI. Jim recently bumped their prices. the most affordable plan of Rs 155 now costs Rs 189, an increment of 22%, this is on par with other giants, who have either increased their pricing or are in the discussion of increasing their pricing. The reason is simple - 5G is very expensive.
4G Works on waves with a wavelength of 6Ghz, and 5G works on millimetre waves. The problem is that millimetre waves are really thin and have much less power compared to 4g. This results in an awkward scenario, where 5G waves cannot penetrate through thick walls or other substances compared to 4g. To overcome this Companies have to install 5G Tower more than twice of 4G, which automatically bumps the price. Hence 5G Is really expensive and unsustainable to work with
A recent report by Nokia [Nokia report reveals 5G data consumption four times faster than 4G in India] 5G users in India, consume a staggering 3.6 times more data compared to their 4G counterparts.
Unsustainable equation
There is massive competition between Airtel, Jio and VI in both price and quality. All of these companies offer attractive data plans to maintain their subscriber base and compete fairly with the competitive market. However, with the current data consumption trends, this unlimited plan can turn into a financial burden. Imagine millions of users streaming high-definition videos, downloading massive games and participating in high data consumption live streams. Can Airtel, Jio, and Vi instruction even handle this ever-increasing 5G data demand?
Rise of WI-FI Reliance
Since 5G Has become unsustainable and a money burn for companies, they have started investing in their router service. All these companies are innovating in WIFI And releasing new models of their routers. As consumers become more cost-conscious, they might rely heavily on free Wi-Fi networks for data-intensive tasks, putting additional strain on public infrastructure.
The Government intervention
Eventually, the data prices will reach their peak. The government might need to intervene to regulate data pricing and ensure equitable access to high-speed internet, especially in rural areas. This could make Mobile data slower and at a subsidized rate, not beneficial for all.
3G - Will History Repeat itself
The adoption of 3G in India came at a very late stage. It was delayed to such an extent that the government-owned MTNL and BSNL had to step up and introduce 3G, something unheard of. 3G was marked by little to no adoption, only people living in India and Dehli who had big pockets were able to adopt it. The initial 3G was marked by a lack of infra. It was during this time that Jio stepped up and completely revolutionised the market, it introduced 4g at a subsidized rate which resulted in more than half of India coming online.
This seems scarily similar to what is happening today. Some company might just come up suddenly and change the landscape of the market just as Jio did
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