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n an attempt to further increase mobile broadband in India, Idea Cellular has slashed 2G data tariffs by 90 per cent by all its circles. Similarly, the country’s third largest operator has also reduced 3G data charges by 33 per cent.
Even though the move follows a sling of similar initiatives by other service providers, the industry rules out a tariff war.
“The reduction in data tariff is aimed at catalysing data adoption amongst the masses and empowering them with the power of mobile Internet at an affordable cost,” Ambrish Jain, Deputy Managing Director, Idea Cellular, said.
The reduction in tariffs is for both pre- and post-paid services, and dongles. The offer, effective November 15, would be available for six months. The Aditya Birla group company now offers both 2G and 3G data at 2 paise per 10 KB.
This would result in growth of data usage, apart from bringing in additional subscribers. “Further, this should also result in improving our average revenues per user (ARPUs),” Jain said.
Of its total 127 million subscribers, 33 million are data users, raking in data ARPUs (a metric to gauge the financial strength of a telecom company) at Rs 55. The company offers 3G services across 10 circles in the country.
“Clearly, the idea is to incentivise people to take up data, especially 3G, besides matching competition,” said Kamlesh Bhatia, research director at Gartner.
Tariff war unlikely
However, this is unlikely to lead to a tariff war, he said, adding, “the operators have burned their fingers on voice services and are now expected to take a more mature stance.”
Earlier, operators tried to outbid each other by slashing tariffs resulting in fall in net profits and revenues, while many of their debts also soared.
Most of the leading operators such as Bharti Airtel, Aircel and Vodafone among others, had also slashed 2G mobile Internet charges.
Some of the operators such as Reliance Communications had slashed international roaming rates under specific packages, while Aircel reduced tariffs a special Diwali offer.
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