In the 1990s, mobile calls in India cost up to ₹17 per minute, with charges even for incoming calls. Today, India has some of the world's cheapest mobile and internet rates. How do you think this became possible?
India's mobile and internet rates became among the cheapest in the world due to several factors.
Massive expansion of communication infrastructure including mobile towers, fibre optic networks, and data centres increased capacity and reduced per-unit costs.
Technological advancements made equipment and transmission more efficient.
Increased competition among service providers drove prices down.
Government policies promoting digital connectivity and initiatives like Digital India expanded infrastructure to rural areas.
The large subscriber base of 1,160 million wireless users and nearly 900 million internet connections creates economies of scale, allowing providers to offer services at lower rates while maintaining profitability.
Explanation
The chapter notes that in 2025, there are 1,160 million wireless telephone subscribers and nearly 900 million internet connections in India. This massive scale of adoption, combined with infrastructure development and competition, has enabled India to have some of the world's cheapest mobile and internet rates compared to the 1990s when calls cost up to ₹17 per minute.
Solution Steps
Massive expansion of communication infrastructure including mobile towers, fibre optic networks, and data centres increased capacity and reduced per-unit costs
Technological advancements made equipment and transmission more efficient
Increased competition among service providers drove prices down
Government policies promoting digital connectivity and initiatives like Digital India expanded infrastructure to rural areas
Large subscriber base of 1,160 million wireless users and nearly 900 million internet connections creates economies of scale, enabling lower rates while maintaining profitability