ACT Fibernet raises broadband rates in 8 Indian cities.

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• ACT Fibernet raises broadband rates in 8 Indian cities.

Internet service provider ACT Fibernet has announced that it will increase the rental rates for its broadband plans starting in June. The rate increase would only apply in eight of the 14 cities where the service provider currently operates. The company, which has sent out fliers to customers including this author, has said the hotfix will depend on which plans users opt for, meaning it won't be a standard update for all customers. . Contacted by TechRadar India, the company said the increase would be in the range of 2-5%. The cities where ACT Fibernet rents are increasing are Bengaluru, Chennai, Hyderabad and Delhi among the metros. Rental rates would also increase in Coimbatore in Tamil Nadu, as well as Guntur, Vijayawada and Visakhapatnam in Andhra Pradesh. The revised prices in accordance with the plans should appear on the company's website as well as in its app over the next weekend. Earlier this month, the company reported a huge 40% increase in peak traffic, with more than 55% of that increase coming in the form of streaming. The company said that the growing demand for internet services is notable in tier-two cities as well as major subways, apparently due to long-term foreclosure due to Covid-19. In an email to subscribers, ACT Fibernet reports that the company has kept prices constant for two years despite cost increases and investments needed to improve service. He referred to "unprecedented challenges" in recent years that led to an increase in operating costs, which ultimately led to this price increase.

Why the increase in prices?

The Bengaluru-based company had recently increased internet speeds to 300 Mbps with an Unlimited Fair Use Policy (FUP) for all customers working from home during the lockdown period. However, the fact is that many individual users have also switched from wired broadband to wireless broadband, where the cost is significantly lower with reasonably reasonable speeds if used for email and streaming media. Compared to an average cost of Rs.700 or more for wired broadband, users would spend less than half on some of the wireless plans offered by Reliance Jio, AirTel and Ideas Vodafone cellular services.

From wired to wireless

Since most households already have cellular plans that have unused internet plans and even television that they watch more and more personally, users tend to stick to smartphones and their plans instead of having wired broadband. A second scenario Adding to the pressure on cable internet service providers is the increase in streaming media where a household is now watching four different movies on four devices instead of just one connected to the TV in the living room. Therefore, ISPs have no choice but to increase the prices of their plans as they may suffer in the not too distant future.