Mobile rates: Indians pay more than the Americans

India ranks 83, among 166 countries, in spending on mobile rates

Indian mobile rates are less affordable than they are often made out to be, according to a report published by the International Telecommunications Union.

According to the report, released on Monday, India ranks 83, among 166 countries, in spending on mobile rates. This means citizens of 82 countries, including Hong Kong, Singapore, the US, the UK, Germany and France, pay less as mobile rates.

Indians spend 2.23 per cent of their gross national income per capita for mobile service, according to the study.

Gross national income (GNI) — a term coined by the World Bank — is the dollar value of a country’s final income in a year, divided by its population. It reflects the average income of a country’s citizens.

Ranked 28, China, too, is way ahead of India, with its citizens spending only 0.74 per cent of their GNI per capita.

Prepaid mobile services cost an average of 1.6 per cent of the GNI per capita in developed countries as compared to a global average of four per cent, and 6.2 per cent in developing countries.

In mobile broadband services, too, India doesn’t rank very high. At 81, Indians pay 2.58 per cent of GNI per capita for prepaid handset-based broadband service.

This is much higher than what people in the US, Singapore and Austria pay.

India’s rank was worse for postpaid handset-based broadband services. India was ranked 92, whereas China was well ahead at 63. Indians pay 2.61 per cent of their GNI per capita, while the Chinese pay only 1.48 GNI per capita.

In fixed broadband services, the difference between India’s and China’s ranks is less. India is 87, while China is one ahead.

Indians fork out 3.66 per cent of their GNI per capital for fixed broadband services.

The country topping the list in this category is Macao, where citizens only pay 0.32 per cent of their GNI per capita for the service.

The amount subscribers pay for these services is substantial because, compared to the countries that have ranked better than it, India’s per capita income is very low.

According to the study, India’s average revenue on a monthly mobile plan based on 2013 rates is $2.91. In China, it is $4.06, nearly four times more than India.

Based on the data, India has one of the cheapest mobile outgo in a month, after only Sri Lanka, Iran, Bhutan, Uzbekistan and Bangladesh.

As far as mobile broadband is concerned, only Sri Lanka, Moldova, Sudan, Pakistan and  Cambodia have cheaper rates. In fixed broadband, only Sri Lanka, Vietnam and Bangladesh have lower monthly bills.