 "Image via Shutterstock")
Ahead of Reliance Jio's full-scale entry into the mobile services arena, Idea Cellular on Monday joined price war with Bharti Airtel in cutting data tariffs by as much as 67 per cent to stem customer flight.
While Airtel had on Sunday announced plans to offer prepaid customers as much as 67 per cent more data for the same fees, Idea Cellular on Monday announced joining the price war with a matching reduction.
"Idea Cellular has now slashed the rates of its 4G, 3G BIG Internet packs by up to 67 per cent, providing more value to heavy Internet users who consume data packs of 2GB to 10GB," Idea said in a statement.
Earlier last week, Idea had announced the price reduction by 45 per cent for light Internet users (below 1GB).
Billionaire Mukesh Ambani's Reliance may launch high-speed data and 4G voice services as early as August. Reliance Jio is already offering services for a limited number of users on a trial basis, integrating spectrum and testing the network.
Jio, which has 1.5 million customers in its beta tests, may offer high-speed data at very low price or may bundle free voice calls to lure users in the world's second-largest smartphone market.
While the company initially offered 4G SIM cards bundled with its LYF smartphones, priced at as low as Rs 2,999, Jio is offering services with Samsung phones and may expand it to include iPhones in near future.
Jio is offering 90 days of free unlimited 4G mobile Internet and voice calling in the SIM cards.
Airtel stock slipped 4 per cent to close at Rs 363.45 on BSE, while Idea shares declined 6.5 per cent to close at Rs 103.90. Reliance Industries' fell 0.82 per cent to close at Rs 1,004.25.
"Idea is now offering 10GB 4G, 3G data pack for just Rs 990. Idea's 2GB data is now priced at just Rs 349, as against the earlier price of Rs 449. Idea users will now get 5GB of 4G, 3G data at just Rs 649 — a 67 per cent more value than 3GB data earlier," Idea said in the statement.
Idea said that the reduced tariff for pre-paid users have gone live across all Idea 4G and 3G provider circles, and postpaid roll-out is underway.
Ambani had in March stated that Jio would offer mobile broadband speeds that are 40 to 80 times faster than current average speeds. Jio's network, he had said, was been designed to provide 10GB of monthly data for every user.
"While the price reduction in our sachet data packs was aimed at inducting more users into the world of Internet, the reduction in rates of BIG Recharge packs now, is aimed at delivering significantly higher Value for Money to our regular Internet users," Idea Cellular Chief Marketing Officer Sashi Shankar said.
