Monday, 24 June 2013

Airtel prunes 4G data plans by 31%; tariffs on par with 3G - Indian Express

Express news service : New Delhi, Tue Jun 25 2013, 02:25 hrs Small Large Print

Bharti Airtel on Monday cut the price of 4G data plans by 31 per cent to get the first mover advantage in a new segment of the telecom market.

Though the company has a small data subscriber base in 4G, (none disclose these numbers) but the scale of cuts indicate how seriously it is taking the market where rival Reliance Industries (RIL) has already begun to put in ambitious moves. Bharti's 4G rates have become on par with 3G.

In the telecom business the terms 2G, 3G and 4G refer to the spectrum used to communicate among subscribers. While 2G is more than adequate for voice calls, internet and other data usage become much better in 3G and improves further in 4G.

India's largest telecom company by subscriber base in 2G and 3G, Bharti Airtel will now charge only Rs 430 for plans it was earlier charging Rs 650 in the four telecom circles where it runs the 4G services.

These are Bangalore, Kolkata, Pune and Chandigarh. It has also bought a 49 per cent stake in Qualcomm's BWA (broadband wireless access) venture in India to offer services in eight more circles.

RIL has incidentally won bids for all the 22 circles in the country. Speaking to shareholders at the 37th Annual General Meeting of the company this month, Mukesh Ambani said Reliance Jio 4G services would be launched within a year. The Sunil Mittal-led company has also recently reduced 2G data tariffs by 90 per cent in nine circles. Similarly Vodafone has also cut 2G data charges by more than 80 per cent in Karnataka, UP West, Madhya Pradesh and Chhattisgarh, a move which was promptly followed by Idea Cellular. Last week it cut data charges by a massive 90 per cent too.

The logic is simple as each telecom service provider company realises that revenue has plateaued in voice telephony and the way to generate revenue is to attract data traffic. The cuts are meant to encourage vigorous use of data by customers as hardly anyone use what they pay for unlike in voice telephony.

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