Poor network quality is causing digital payment interruption for 2 out of every 3 Indians: Report

According to a survey done by the private firm LocalCircles, 2 in 3 Indian consumers who utilise digital payments have one or more transactions disrupted each month as a result of poor 3G or 4G network quality.

The poll indicated that 62 percent of 3G/4G mobile data subscribers use their connections to complete 1 or more banking/payment activities every month, citing growing reliance on internet connectivity over phone, notably during and after the Covid-19 outbreak.

According to the Economic Survey of India 2021-22, India’s internet user base surpassed 830 million in 2021, while wireless internet data usage increased sevenfold. According to the estimate, India’s average monthly internet data usage has climbed from 1.24 GB in 2018 to 14.1 GB in 2021. According to the Telecom Regulatory Authority of India (TRAI), Jio’s average 4G data download speed improved by 10%, while Vodafone and Airtel’s speeds increased by 8.9% and 5.3 percent, respectively.

As a result, India’s telecom carriers, such as Airtel and Vodafone, have raised their tariffs for both pre-paid and post-paid consumers. After a two-year hiatus, the final tariff increase occurred in November 2021. In November 2021, Bharti Airtel, Vodafone Idea, and Reliance Jio increased their pricing by 20-25 percent.

Indian carriers are expected to raise tariffs by 20-25 percent this year, according to analysts.

In her Budget 2022, Finance Minister Nirmala Sitharaman indicated that the spectrum auction for the next-generation telecom network will be completed in 2022, allowing telecom operators to begin rolling out services by 2022-23.

The survey also found that 9 out of 10 Indian consumers have experienced frequent interruptions or slow speeds with their 3G or 4G mobile data connection. Furthermore, it has been discovered that 46% of 3G/4G mobile data consumers use their devices to access the internet for 4 hours or more every day.

According to the poll, 62% of 3G/4G mobile data consumers use their connections to complete at least one banking/payment transaction per month.

66% who use digital payments believe that bad 3G/4G network quality disrupts one or more of their transactions each month.

While efforts are underway to provide consumers with a 5G network in the next years, consumers have complained that mobile operators supplying 3G/4G internet bandwidth are not providing the value that users have requested.

Even a TRAI driving test in 16 towns, including Dimapur, Kohima, Darjeeling, Kalimpong, Siliguri, Patna, Itanagar, Malda, and Agartala, proved inadequate.

Over 38,000 people responded to the poll, which was conducted in 352 districts across the country. Men made up 65% of the participants, while women made up 35%. Tier 1 districts had 43 percent of the respondents, tier 2 had 32 percent, and tier 3, 4, and rural districts had 25 percent.

In India, 9 out of 10 mobile phone users complain about inadequate wireless connectivity.

According to a local survey, more than nine out of ten mobile phone users in India complain about inadequate wireless connectivity, and two-thirds struggle with disrupted digital payments on outdated 3G and 4G networks.

About 48% of the 8,210 users polled by LocalCircles said their mobile services were frequently disrupted owing to poor network availability, while 44% complained about slow data rates. According to a statement from LocalCircles, 66% who responded to another poll question indicated they had problems with at least one online transaction, leading them to rely on other payment methods such as cash, check, or credit cards.

Despite recent rate hikes, the data highlight the widening difference in services currently provided by Indian telecom companies.

The results of the poll also point to the need to invest more in infrastructure in order to improve not only telecom services but also digital payments. According to LocalCircles, India processed 35 billion digital transactions in 2021, and this number might rise dramatically if cellular network concerns are resolved.