State-run telecom operator BSNL is set to bring a huge transformation to the wireless industry in India by making mobile internet much cheaper. As part of the carrier's plans for the future, BSNL has announced a generous 50% drop on all 3G internet prices across the nation. It is likely that such a price dip will attract a massive traffic, so BSNL will put new prices in effect once the next phase of network expansion is completed, according to a PTI post via Economic Times.
Such a steep price cut will wash out the unpredictable mobile internet prices in the country. In 2014, carriers bumped up the data prices by up to 100%. Although certain carriers have started dropping the prices again, it's still a pressing concern for mobile users who pay hefty monthly bills to get a reliable high-speed internet connection. BSNL customers are already paying standard 3G mobile internet rates monthly, getting 1GB of 3G data for Rs. 175 and Rs. 251 for 2GB data.
BSNL is currently working on the phase 7 network expansion plan and is expected to be completed by June 2015. The next stage will then be commenced, after the firm starts issuing tender in the first quarter of financial year 2015-2016. Upon completion of phase 8 network expansion plan, the 3G internet prices will sharply decline. But there's going to be a long wait before the words transform into actions.
"We have utilised over 90% of 3G capacity. If we reduce tariff right now, there can be sudden increase in traffic and network may not be able to bear the load. Once we expand this capacity to handle adequate traffic under phase 8, we will reduce rates," BSNL chairman and MD Anupam Shrivastav told PTI.
The next phase of network expansion project is projected to cost up to Rs. 7,000 crores and take up to 3 years for completion. As a part of the upcoming project, BSNL aims at deploying free Wi-Fi zones across 2,500 cities and towns in India. BSNL subscribers will automatically be connected to the hotspots when the user is within the range to enjoy free 3G network.