2G data rate down 80%; cut follows similar moves by Airtel and RCom aimed at 1st-time users.
Three days after slashing international roaming rates on voice and data by 78-95%, making international calls as cheap as 1 paise per second, Vodafone, India’s second largest telecom company (telco), has now slashed 2G mobile internet rates by 80% for its prepaid and postpaid customers.
Starting today, Vodafone’s ‘Diwali Bonanza’ will allow its 2G and 3G customers to pay the same rates for mobile data on a pay-as-you-go basis even while roaming, which essentially reduces tariffs from 10 paise per KB to 2 paise per KB, which will be the standard rate for mobile data going forward, even after the festive season.
Vivek Mathur, chief commercial officer for Vodafone India, said the new reduced rates follow the successful trial of these reduced tariffs in Karnataka, Uttar Pradesh (west), Madhya Pradesh and Chattisgarh in mid-June. Vodafone currently has 4.12 crore data subscribers at the end of June, compared with an overall subscriber base of 14.1 crore. The company said data usage has grown almost 75% on-year.
In June, Vodafone followed other operators by slashing prepaid 3G data tariffs by 80% to 2 paise per KB from 10 paise per KB, making 3G data services cheaper than 2G data rates. With Thursday’s announcement, 2G and 3G mobile data rates will now cost the same for prepaid and postpaid users.
This move is aimed at encouraging usage of 2G mobile data for first-time mobile internet users, and then gradually encouraging them to shift to 3G with no extra charges involved, a strategy that is employed by Bharti Airtel and Reliance Communication as well.
However, analysts see this move as a last-ditch attempt by the operator to push 2G data usage, which is negligible compared to 2G voice, especially given the increasing number of 3G customers. Still, with 2G and 3G data rates now unified, most subscribers are still expected to opt for 3G over 2G, said another analyst. Besides, data revenues still account for only 8-10% of telcos’ revenues.
Earlier this week, Vodafone’s UK-based parent said it will acquire a 100% stake of its India operations for Rs 10,141 crore, with additional funding to follow that would be used for network expansion of 2G and 3G.
National operator Aircel on Thursday also introduced a special ‘Diwali Aircel-to-Aircel STD’ calling pack at 10p/minute up to 150 minutes, and 35p/minute for Aircel STD calls to other networks. The rate-cutter STD pack is priced at Rs 39 with a validity of 28 days.
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