Reply to Mukesh Ambani: 2G Must Stay

On 31st July, 2020 Mr. Mukesh Ambani said in a video message,“India still has 300 million (30 crores) mobile subscribers trapped in the 2G era, their feature phones keep them excluded even from the basic uses of the internet at a time when both India and the rest of the world are standing at the doorsteps of 5G telephony." This was published today in many newspapers too. English newspapers covered the story but there were a few Hindi newspapers which published it. National Hindi newspapers did cover the story but local Hindi newspapers gave it a miss. It was a surprise that none of the newspapers have written an editorial on this matter. Shockingly, no one has come out in public to speak against the statement given by Mr. Ambani forcing the government to scrap 2G as soon as possible. So we thought of telling our fellow Indians why 2G must stay.

Old & Cheap but not Worthless

2G technology is old. At the same time it is cheap. That does not mean that it is useless. In every industry there are some fixed costs and some variable costs. When mobile telephony came into India many private companies invested in it. They selected their circles of choice and started to make their reach to as many consumers as possible. The initial infrastructure costs of 2G included mobile towers and transmitting antennas. 2G transmitters cover much more area than a 4G tower. Today, the telecom operators which offer 2G service are using the towers which were installed many years ago. Today they need not invest in more towers. This makes the cost of 2G come down. The only cost is of the electricity required to run the transmitters. This is beneficial for both the operators and the consumers.

2G does offer Internet

Mr. Ambani said that feature phones keep the users excluded from basic uses of internet. Technically, it is incorrect. The feature phones do offer basic uses of internet such as browsing and instant messaging. 2G has the capability to connect a feature phone to the world. If you do not believe this, you may go to your nearest mobile retailer or surf the web. If Mr. Ambani meant that feature phones do not enable a person to download expensive OTT platforms and waste time watching movies and web series, he is correct. What is more shocking is that you can play YouTube videos on your feature phones!

Pocket Friendly for Users

2G technology and feature phones are pocket friendly for consumers. We have told you about the 2G technology above. Now let us talk about feature phones. These days feature phones cost between Rs. 500 and Rs. 4000. Whereas, smartphones start from Rs. 3500 and go into Lakhs. A feature phone do not have a limited life cycle. Replace the battery after 3-4 years and it will go on. Scrapping 2G is the only way to kill an old feature phone. A smartphone on the other hand has a limited life cycle. After 3-4 years the operating system do not support the new features and the user is forced to buy a new smartphone. 

If you ever used a feature phone you may have experienced it falling on the floor. When a feature phone falls the battery cover opens up and the battery comes out. You witness a scratch based on the intensity of the fall. You just need to pick up the phone, battery and back cover, put them at their place and switch on your phone. The probability of screen getting damaged if very less. That is not the case with smartphones. When a smartphone falls the probability of screen getting damaged is very high. Smartphone users need to invest into screen guards. Therefore, feature phones are better for people who are adventurous, careless or work in conditions where the chance of their phone falling down is high.

Is Mr. Ambani ready to give a decent smartphone to all feature phone users? Will he take care of the repair costs? Will he give the users a new smartphone when the previous one becomes obsolete?

Some Users do not need Smartphones

It is important to know that there are many people who use a feature phone willingly. Not Every person requires a smartphone. The cellular technology of the phone is a different matter. Some people require a better battery life in their phone. Some people like a light weight phone. Some people like a compact phone. Some like the feel of a button.

What about Poor and Rural India?

From Mr. Ambani's statement it is evident that he is unaware about India. He does not know about the poverty of India. The Indian telecom industry is already disturbed since 2016. The consumers were badly hit. It was possible for the consumers to spend just Rs. 50 and keep your mobile number active all around the year. After mid 2016 everything changed. Consumers are forced to pay Rs 50 each month. The Indians living around the poverty line are suffering. Every rupee matters for them. The rural India is also suffering after mid 2016.

2G serves the poor and the rural India. Villages of India are vast. 4G and 5G cannot match the reaching capacity of 2G. 4G and 5G are good for cities. Will any company install 100s of mobile towers in an village of 2000 acres? Will the poor of this country happily pay for 4G and 5G? Is it right to take away the access of cheap technology from people?

Geographical Advantage of 2G

Will 4G and 5G ever take over the geographical advantage of 2G? 2G is available in hills as well as deserts. It is available in forests and in plains. If the government scraps 2G who will install tower on every place where 2G currently reaches? Will Mr. Ambani install 4G towers in every village of India? Will he install 4G towers in forests and deserts?

Who is stopping you Mr. Ambani?

The big question is who is stopping Mr. Ambani to install 4G towers and 5G towers across India? Why is he pressuring the government to scrap 2G? Why can't he make his service better so that consumers use MNP to switch service provider? Why can't he bring down the price of his mobile telephony services? He has added millions of subscribers to his network but instead of lowering the price he has raised it. Is he allowed to reach villages and install 4G towers? The answer is yes. Is he allowed to lower the price for his services to attract new customers? The answer is yes. What is the need to stop 2G services in India? Is it GREED?