The recent price hike has definitely made us angry. We need to pay around ₹599 for the things we paid only ₹399. But if we take a trip in the not so long ago history before 2016, we used to pay way more for way fewer benefits.
Here are some plans and packs of some major carriers before Jio.
- Data packs were similar for about ₹250 for 1 GB Data for 28 days, which is insane as of today.
- There was a piece of news dated 21st August 2015, which showed a hike in the rate cutter plans. The rate cutter was for calls on the same network which are free for every operator now. It was for Kolkata and the final tariff was 10p/min for a month’s validity. Airtel, Vodafone, and Idea were charging ₹123, ₹118, ₹91 respectively.
- Others are local call rate cutter plans as of 15th April 2015 for Delhi Circle. Vodafone offered 30p/min for 60 days at ₹26, Idea offered 30p/min for 28 days at ₹64 and Airtel offered 40p/min for 28 days at ₹51. These are just rate cutters, don’t forget the actual balance you need to make calls. Now we have packs with unlimited calls.
- Docomo on 7th April 2015 has some offers for on-net calls in Maharashtra circle. For ₹63 they offered 60,000 local secs (1000 minutes) for 30 days and for ₹189 1 GB 3G Data and Unlimited calls for 30 days.
Due to the high prices, Idea made a profit of ₹756 Crores in 2014.
So let’s do some comparisons between the before tariffs and one of Airtel packs as of now which is ₹249 offering Unlimited calling, 1.5 GB 4G data/day, 100 SMS/day and access to a premium subscription to media apps for 28 days.
Let’s say a person has an average calling of 45 minutes/day and consumes data of 0.5GB/ day. ( I would like to say, these numbers are just personal assumptions and may or may not with practical usage.) I know that this high data usage was only made possible due to low data prices. So let us bring down data to again 1 GB/month. So, per month (30 days) usage gets to 1350 minutes of calling and 1 GB of data.
Let us take the Vodafone rate cutter plans 30p/min for 60 days ₹26. The 30-day cost of the plan gets down to ₹13. The calling of 45 days gets to 30p X 1350mins = ₹405. Now to total cost gets to ₹405 (actual balance if considered full talk time recharge) + ₹13 (effective rate cutter fro 30 days) + ₹249 (for data) = ₹667. This is unbelievably high. I haven’t added SMS cost yet.
Take a look at another example at which Idea offers on-net calls at 10p/min for 30 days ar ₹91. So let us take those 45 mins/day calls as Idea to Idea. The calling amount gets to 10pX1350 mins = ₹135 and the total cost is ₹135 + ₹91 + ₹249 = ₹475, again high.
Now what Docomo offered in Maharashtra. 60,000secs (1000 mins) for ₹63. So the cost becomes ₹63 + ₹249 = ₹312. Other plans for ₹189 which offered Unlimited on-net calls and 1 Gb 3G data. But you still have to shred for off-net calls.
So as we saw earlier the net cost per month was way more than we what we pay today. And not to mention the money-saving gets better if we opt for a higher plan today.
I think this is the harmony between the prices, where we get looted and companies were making huge money like mentioned earlier and where we got all the benefits and companies make huge losses like the ₹74000 crores collective loss that the Airtel, Idea, and Vodafone suffered in Q2 of FY20.
We may think the 3 year period where we cared the least about paying the least for the mobile connection as compensation and we still have the world’s cheapest mobile connection.
I am mad about gadgets especially smartphones. I like to help people deciding their phone. I love talking about gadgets and also share whatever I know about them.