BUSINESS
Idea Cellular said that its 3G subscriber base had grown from 3 million in the quarter ending June 2012 to 4 million currently. In May, Idea Cellular had slashed 3G tariffs by 70%.
In a clear case of 3G uptake rapidly increasing post the recent tariff cuts, Idea Cellular said that its 3G subscriber base had grown from 3 million in the quarter ending June 2012 to 4 million currently. In May, Idea Cellular had slashed 3G tariffs by 70%.
Speaking at the launch of Idea’s fourth 3G handset Idea Aurus, Sashi Shankar, CMO, Idea Cellular said, “After slashing 3G prices, the number of 3G subscribers and recharges have definitely gone up, especially amongst the bottom rung. Availability of affordable smartphones is also making acceptance. Idea is doing its bit towards this, by launching handsets at a very affordable price point.”
Idea Cellular on Monday launched Idea Aurus – a dual SIM 3G handset. Alcatel Lucent is the handset manufacturer. Based on the Android 2.3 Gingerbread OS, the handset’s USP is its enhanced real-time video calling capability. This is possible through a front camera and 5MP primary camera. Other new features of the smartphone include an 800 MHz processor, a 3.5 inch multi-touch screen display, and cloud backup functionality.
The handset also has a built-in music player with supplied in-ear headphones.Itis priced at Rs7,190 and comes with a bundled 3G offer worth Rs2,340, which includes 2 GB free data on a recharge of Rs259 per month for three months, free Idea TV subscription for three months and 10 minutes of free daily video calling for a period of 90 days. This translates into a final handset price of Rs5,109.
Shankar said that this price point is the highest that Idea plans to price its 3G handsets at, and after this the price of 3G handsets is only set to decrease to promote mass adoption of 3G. “Ideally, a 3G handset should be priced at Rs2,000. Also, very soon, 3G will reach an inflection point wherein it will compete with 2G data prices, because after all, the only difference between the two is the speed,” he said. He said that till date, Idea Cellular had 20 million data subscribers.
Idea Cellular, which has already sold over1 lakh ID 918 handsets (which was the last 3G handset launched last December), is looking to duplicate the success with its Aurus handsets, and aims to sell 1 lakh handsets in the next 3-4 months. Shankar is confident of reaching this target despite video calling not taking off in the country, because he feels that there are now an increasing number of handsets in the market with video calling features, which will boost the usage of the same.
The company is also evaluating a tablet launch, looking at the popularity of the same, but has not finalised a partner yet. Idea Aurus is now available in Mumbai and will also be available at all major retail stores across the country by the end of the week.
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