RCom hikes 3G data rates by 27%

Reliance Communications hiked its 3G data prices by around 27%, for new connections. The new rates have become yesterday from December 1, while those subscribers on the old plan will continue with their old rates.

As per the increased rates, its Rs 123 pack which came with 1 GB data, will now provide only 400 MB. The same plan will now yield 60 per less data. The subscriber will have to shell out Rs 156 for 1 GB data.

Its Rs 246 pack which earlier allowed downloads worth 2 GB, will now allow only 1.5 GB, according to a call center executive of Reliance Communications. The operator is yet to respond to queries on this matter.

This move comes four months after the operator unveiled its plan making its 3G cheaper than 2G, for both pre-paid and post-paid users. “They (the operator) had reduced prices to widen the market and see the traction. They must have got good traction,” observed Mahantesh Marilinga, senior research analyst at Finquest.

In the last quarter, RCom had said that its data business has been performing well. “The total data traffic went up 116% from last year. The traffic increased due to increase in data subscribers and higher data usage per customer. The total data customer base has grown 30.8% to 34 million, which includes 9.1 million 3G customers,” RCom had said, in a press release.

RCom's plan to reduce 3G rates was emulated by operators like Idea Cellular and Vodafone India, as well. While Vodafone slashed its data rates by 80% in October, Idea Cellular reduced them by 90% in November, hoping to bag more number of data subscribers.

Analysts say that discounts offered on 3G are just stop-gap arrangements until subscribers start trying the service. They also predict that RCom's latest move will help the company, as very few subscribers who start using 3G data will ever shift back to 2G.

“Subscribers won't shift back to 2G unless they are facing huge cash crunch. It is the same plan as the outgo has not change and only utilisation did. Once they exceed the quota, subscribers will either be billed more or they will go in for another recharge,” said Marilinga. This way, Reliance can protect its incremental 3G subscribers will remain, while spending more.

RCom's stock went up by 2.7% to close at Rs 142, as per data available on the Bombay Stock Exchange.

New Rates

Rs 123 -- 400 MB
Rs 156 --1 GB
Rs 246 --1.5 GB

Old Rates

Rs 123 -- 1 GB
Rs 246 -- 2 GB