Indian telecom market faces 3G rate cut, but poor network will hit user addition

Telecom Lead India: The Indian 3G market is undergoing
stiff competition. Following the revision in tariffs by MTNL and Airtel, Idea
Cellular has cut 3G rates by upto 70 percent.

The cut in prices is unlikely to bring in new customers
to the network unless operators invest in improving network, analysts warned.

Due to heavy spectrum price, operators did not invest
significantly in 3G networks. First, they need to expand coverage and invest in
quality networks.

Idea Cellular, interestingly, has increased prices in
some plans.

The Rs 1250 plan now offers 4 GB, while it used to offer
10 GB earlier.

The data offered by the Rs 850 plan has been reduced to 3
GB from 6 GB.

Price revision by Bharti Airtel and Idea Cellular are
similar in some of the schemes.

Bharti Airtel cuts 3G mobile data services rate

Recently, Airtel announced substantial reduction in 3G
tariffs for Indian customers. The reduction in tariffs under some plan is
around 70 percent. The substantial reduction in 3G data rate is aimed at
increasing usage of the premium data services in the country.

Take-off of the 3G services has been slower than expected
partly due to high prices. The price revision is expected to bring more
customers.

MTNL introduces new 3G data plans in Mumbai

Recently, MTNL has come up with more affordable high
speed 3G mobile broadband connectivity in Mumbai. The service operator has
introduced two new 3G Data Plans of Rs.1190 and Rs.1200 for all prepaid and
postpaid customers in Mumbai.

Idea Cellular said the new tariff plan aims to make
internet usage within the reach of rural, mid town customers at home and will
help first time users to experience the benefits of 3G. Idea’s objective is to
drive mobile internet usage for the mass market.

“We have been a pioneer in 3G since inception and
with these new prices; Idea has brought 3G within the reach of the masses. I am
confident that new prices will generate a lot of trial and will drive off take.
Our new sachet packs of Rs 10 & HERO-25 are aimed at youngsters who will
access high speed internet on-the-go without worrying about the expense,”
said Sashi Shankar, CMO, Idea Cellular.

Idea Cellular has slashed its pay-as-you-go tariff to
3p/10 KB from 10p/10KB. Idea customers can now pay Rs 3 per MB or Rs 3,000 per
GB for 3G data, without subscribing to any packs.

Idea also has a 3G-2G unlimited offer for Rs 950, which
offers 3G data speed till 6 GB of use and 2G speed after that. The plan is
technically unlimited data, but 3G speeds are available only for 6 GB per month.

Idea Cellular has reduced prices of sachet packs, regular
packs and unlimited packs.

Idea’s new sachet pack of Rs 10 will now offer 30 minutes
of high speed internet surfing. It also unveiled HERO-25, a new sachet pack
which will give 100 MB data with 3 days validity at Rs 25, compared to Rs 17
charged by Aircel.

For regular home & SoHo internet users, Idea now
offers 1GB of data download at just Rs 250.

Rs 350 will now fetch you 1.5 GB instead of the old 1 GB.

Idea’s 3G services are present in 3207 towns. Idea has
2.7 Million active 3G users with average usage of 330 MB/month, the company
said.

Airtel has also introduced Smartbytes additional data usage packs for its postpaid
Airtel mobile customers on 3G.

In Mumbai, MTNL has also introduced
new Monthly 3G Data Plan-1200 for Prepaid and Postpaid customers
for Rs.1200, which provides 15 GB 3G Data usage per month.

editor@telecomlead.com