2G or Die? Reliance Jio is waiting.


Reliance Jio CMD Mukesh Ambani has asked TRAI and Government of India to kill 2G Mobile services in India.

Started around 25 years ago, Mukesh Ambani feels that 2G is no longer required and should be retired. He opines that the service should be dismantled.

According to data available 30 Crore or around 300 Million Indians still use 2G. These are the poor people of India who want to use a phone like a phone, just to talk with others. They are not smart phone users and don’t use internet. They recharge their phones with small amounts.

Killing 2G through the regulatory route will force all these poor people to buy smart phones and pay for Internet services that they don’t want and don’t know how to use. Maybe they don’t want to use those services too.

But 30 Crore is a huge market. And with the market almost reduced to a duopoly of Reliance and Airtel with Idea Vodafone tottering on the verge of collapse, any move to kill 2G will benefit these two remaining players.

No wonder Mukesh Ambani is thus asking for killing of 2G Services.

Will the Government oblige? Or rather does it have a choice?

After all it is a huge number of people that are going to be affected and they may be forced to pay 39/- every month for getting a very insignificant dose of Internet (as the starting pack). While it will turn into a 1200 Crore Bonanza for the existing players.

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