India will have zero subscribers for 2G internet by June 2019: CMR data

Decline in mobile data rates and availability of low-cost 4G chipsets is likely to end 2G internet subscription in India by June 2019, CyberMedia Research said on Friday.

"...after Jio's entry, the projections indicate that by the first quarter of (financial year) 2020, India would have zero subscribers using 2G internet services.

"This advance is because of the exponential growth in the decline rate (of narrowband internet) after Jio on the scene, which has been 12 per cent average every quarter," Faisal Kawoosa, Principal Analyst for Telecommunications and ESDM, CMR said in a report.

The report said that before Reliance Jio, the decline in wireless narrowband, low speed internet, users was taking place at a quarterly average of 3 per cent that got spurred 4 times after its entry.

"With the 4G cellular capability now in a feature phone as well as bundling of entry-level smartphones by various incumbent operators, the pace towards 4G becoming the default wireless internet access is on the rise," the report said.

Following Jio's cashback offer on 4G phones, Airtel and Vodafone have also started such schemes in partnership with various low cost smartphone vendors.

"...the declining prices per GB of 4G data and penetration of services in tier 3 cities and rural geographies of the country is only going to further expedite the process of all subscribers accessing the internet over wireless to be on 4G or broadband," the report said.