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Telecom Wars bringing Data Prices Down to Rock Bottom – Great times ahead for Mobile users!

September 1, 2016 Leave a comment

After the 80% slashing of data rates by Airtel, the telecom war over tariffs is only going to get fierce with the entry of Reliance, already taking its all favorite market penetration approach, targeting a price of Rs. 43 for a 1GB data plan for 3G.

Service Provider Data Pack Monthly Charges
Vodafone 1GB (3G data) Rs. 297
Idea 1GB (3G data) Rs. 249
BSNL 1GB (3G data) Rs. 198
Airtel 1GB (3G data) Rs. 51
Reliance Jio 1GB (3G data) – 28 days validity Rs. 43  (Target Price)

 

While Vodafone has remained with its high priced model, other telecom service providers have been playing with their rates bringing them down every year. Airtel revised its prices this year slashing down data rates by almost 80% of individual users and by 150% for corporate users. After an initial expenditure of Rs. 1,498 for 1GB data plan, users can enjoy the rate of Rs. 51 per GB after exhausting initial data pack.

Does that make you feel delighted as a mobile user? If yes, then here are some small catches for you –

  • An upfront payment of entire year may be asked giving you an attraction for saving 30-40% more annually on data
  • The validity of data plan is 28 days and not the entire months which means that in an year, you will be buying 13 data packs instead of 12. Same is the story with every telecom service provider.

Despite these catches, you still have a lot of benefit to gain in terms of savings on data plans.

Enters Reliance Jio

No roaming, free night-time surfing, free calls, free messages and rates going to rock bottom prices – what more can a mobile user expect? Reliance Jio is up for making the prices go even lower. An offer of free SIM with 3 months of unlimited data has already created a buzz for Reliance and on the top of it, the target price of Rs. 43 for a 1GB data pack is definitely going to get more subscribers to Reliance. With the current growth in the data volumes utilized by 4G mobile users, a 50% rise is expected in the coming year and this as per Goldman Sachs would convert into an addition of 35 million subscribers for Reliance Jio.

jio-tariff-plan.png

Beside the tariff cuts, Reliance has also planned to come up with bundled offers like free calling with high value plans. 7 plans are already made available starting from Rs. 149 to Rs. 4999, no stone remains unturned by Reliance for giving opportunities to users to enjoy lowest 4G-LTE rates. No roaming when you shift your circle – Another golden egg that users would be up for a grab – Great times are ahead for Mobile Internet Users!

The Background Story

Mukesh Ambani, the RIL Chairman talks about three pillars on which the tariffs are based –

  1. Pay only for voice or for data
  2. Data should be affordable: Small packs starting from Rs. 149 give you 0.3 G data wth 100 SMSs
  3. Pricing structure should be simple : Small plans give you free SMSs, medium packs lets you access 4G at night and large packs give you free voice calls

jiowelcome

 

Not to forget, for all Jio users, the Jio premium apps like JioPlay, JioOnDemand, JioBeats, JioMags, JioXpressNews, JioDrive, JioSecurity and JioMoney are free for Jio users till December 31, 2017 with access to free voice calls – something called “Jio Welcome Offer” by Reliance. Jio LYF Preview Offer, a trial service that was launched for LYF device users grabbed 1.5 million test users and the trial if further extended now for all LYF users.

If this doesn’t excite you much, there is more you can get from Reliance:

  • Jiofi personal routers available at Rs. 1,999
  • Real time billing details
  • Special rates for students (25% less)
  • LYF Smart Phones made affordable (starting from mere Rs. 2,999)

Besides the offers visible from Reliance, you may also want to take a dive into the network and operations of Reliance that are going to get you all this:

  • Reliance Jio is present in 29 states in India including 18000 urban and rural towns and 1,50,000 villages
  • Jio has around 0.5 million activation outlets and close to 1 million recharge outlets.
  • All Reliance Jio outlets would be connected to 1,072 Jio offices in real time
  • Reliance is already the fifth largest Smartphone seller in India considering shipments figures.

After Reliance Jio takes hold of the market, the obvious response would be further cuts in tariffs from remaining telecom players. Idea Cellular has already set plans to reduce tariffs at the target price of Rs. 155. Vodafone is set to give more data on its existing 3G and 4G data plans. The toughened competition is likely to get more of stories in future and more of considerations for data and smart phone users.

Categories: Business