I was shocked to see how cheap data was there too. You hear a lot of hectoring about being considerate of users in developing countries and being frugal with their data when designing apps and websites but at least in India it's not an issue at all.
I concur. Once you get used to mobile data plans in India, you'll realize how much American consumers are getting screwed by the likes of AT&T. AT&T behaves as if they are doing a favor to their consumers and that data is like gold, to be used with extreme respect and care.
BTW, only senders are charged for SMS in India, not receivers, unlike American carriers.
American Internet and communications service providers need some serious competition.
> That was shocking to know that users are charged for receiving SMS in US!
In the US both senders and receivers are charged, generally. Each party pays their provider for the service of carrying messages from and to them across that provider's network.
Note that this makes each party responsible for the part of the complete message transport that they have some control over, and only that part.
So, for example, if you send me a message today, and another message tomorrow, you will pay the same amount both times even if today I'm at home and tomorrow I'm traveling to some remote area where message fees are much higher. I'm the one who pays the higher costs that are incurred due to my travel.
How would this be handled in a place where the sender pays for the whole thing? How do you find out how much it will cost you to send me a message?
In Brazil, SMSes are paid by the sender at local rates. If you are roaming internationally you might pay for receiving them, but it has been a long time since I saw charges for receiving SMSes. Probably the carrier recoups the interconnection fees when you send a SMS back.
For calls, though, the caller pays local rates, but you will pay your share of the roaming charges. Some carriers on pre-paid plans charge you a national long distance fee per call too.
When a business is at the forefront of technological innovation and implementation for decades, the cost of infrastructure builds up, especially when labor cost goes up accordingly.
Now for a nation that is still building itself up, the labor cost is lower and you can simply take the know-hows and older hardwares from the innovators, which significantly cuts down on cost of implementation. Adding that to the economies of scale you can get at 1b+ in population and things can look obscenely cheap.
Of course, that doesn't mean that the businesses you get services from don't abuse of an oligopoly environments and other practices
"being considerate of users in developing countries and being frugal with their data",
This is probably applicable to other developing countries, definitely not to India. Man, data is so cheap, 4G is widespread even in tier 2 cities. Am not sure about tier 3 towns and villages but so far, I am hard pressed to find large tracts of dead zones.
That conclusion might be a bit strong. It might not have been expensive to you, but many in India probably do not have your income level?
The median annual income level in India is under 2000 USD.
I live in India only. 1.5GB per day wont even last you through 5 HD YouTube videos. Its a good plan for people who are conservative with their Internet usage. I would probably believe 1 million users with fibre connection wasting their data just for bragging. Definitely not the people who are on 1.5 GB data plan.
HD videos take a lot of bandwidth. Spotify's default quality (I guess the highest you can get with the free tier) is only 96kbps. So if you stream that 24 hours a day it takes:
How does that scale? Because that sounds awesome if compared to just my own phone plan. But if you say that also fills the role of my home internet, then it's about 1TB too little.
Usually home internet is via other providers, who also have cheap plans. For instance, ACT Giga is 1Gbps, 2.5 TB for about 100 USD per month. Post this limit, speeds usually drop to 1Mbps.
That's the absolute top-end of the plans they have in Bangalore. It's around 2000INR (<30$) per month for a much more moderate 150Mbps / 875GB per month plan. And consider that a lot of the urban crowd we are talking about here will be sharing the cost with 1-3 others, considerably bringing down costs.
$100 the cost of a 1Gbps Verizon FiOS subscription in the US (though theoretically your data transfer is unlimited and not capped at 2.5TB). Seems reasonable to me but I don't know what that equates to when you factor in purchasing power parity.
Even for the young employed folks this is quite the sum. The fact is though, that over the course of an average month it's pretty hard to hit these caps. Its about 800 hours of Netflix HD streaming, and you're probably not going to be able to watch that much just at home.
In all tier 1 cities, which are at least 10, you can get 100Mbps broadband with about 750GB to 1TB data for close to 20 dollars a month. In villages (at least 100 thousands of them) and small towns (roughly 8 thousand of them) where most population resides, the story is different. Only wired broadband provider for them is govt. owned named BSNL whose service is quite unreliable.
4G high speed wireless is accessible everywhere for cheap though.
You're right in that "most" Indians probably do not have broadband access / 4G access. But the urban centers certainly do,and they have enough by way of people to become a huge market. To put it in context, there are at least 46 cities with population > 1M (2011 census), and the top 7 cities by population will certainly have access to broadband as well as cheap 4G. These 7 will account for 50M - 55M in population. In comparison, the US has 10 cities with > 1M population ( as far as I can see on Wikipedia). So even when you account for the lesser internet penetration in India as a whole, the number of people who can possibly access streaming services is quite large.
Is it so cheap because it hasn't reached market saturation yet? Maybe not a lot of people actually use lots of data and as soon as too many people do the prices will go up.
They dont download 100GB. But almost all of them finish their data quotas everyday by watching YouTube and Hotstar videos. Thats like 30GB - 60GB a month.
I heard this comes with forced inserted ads when browsing as well as limited internet access ( only facebook, twitter is available ), is it still valid today?
Median per capita income in India is about $650/yr. I don't know how many hours a median worker works, but to use the US standard of 2k hours per year, that's $0.32 per hour. So two dollars per month is approximately 6 hours of labor.
Now let's try this same calculation with the US. US median per capita income is about $32,000 or $16/hr. The T-Mobile One plan is currently listed on their website at $70 for a single line. That's 4.3 hours.
This is obviously a GROSS estimate, but it appears an Indian worker has to work approximately 1.39x the amount of hours a median American worker has to work for a "good" cell phone plan. You can get much cheaper pay as you go plans, but I wanted to use "mainstream" as much as possible.
>1 million people using Spotify and wasting data pack to brag to their friends? Seriously?
It's evident you don't know India... Most young people in India have dozens of pictures on Facebook of themselves pretending to talk on their mobiles with seemingly expensive sunglasses on. It's like their own particular ice bucket challenge.
I used to do 120G/month when I had a limit that high, in Poland, for around 8$/month (I was able to use 2G and 3G and everything in between, too, but most of the time I was on 4G)
1 million people using Spotify and wasting data pack to brag to their friends? Seriously?