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Country’s 20 million 3G subscribers are going to be benefited by the recent cut in  3G tariff by most of the telecom operators. Recently Bharti Airtel slashed the 3G prices by 70%. Idea Cellular also followed Bharti and reduced the rates by 70%.  Vodafone on the other hand, reduced the monthly rentals on the 3G promo packs by around 33%.

The Idea customers will now pay 3 paise per 10 KB data as against the earlier rate of 10 paise per 10 KB. It has launched its new pricing in 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. The price changes are applicable for mobile phones and data card users. Idea has recently raised its 2G tariff and with the 3G current tariff reduction, the gap between 2G and 3G is narrowing down, which will induce more customers to move to 3G.

Even after more than a year of 3G launch, the 3G penetration is just 2% of the total subscriber base. The subscribers are of the view that the 3G tariff is very expensive. With the recent cut in the prices, the operators expect the usage and penetration to go up.  The industry witnessed an imbalance between 3G pack and Non pack pricing. As most of the customers opted for packs, the recent pricing strategy is focusing on correcting this imbalance and drive volume to generate more 3G revenue.

 

 

Indian Telecom industry is the second largest in the world with 670 million customers. Indian telecom is  known for intense competition, huge subscribers addition and affordable rates.  The industry could reach this height only through the dynamism of the industry leaders, timely support and policy intervention of the Government. 2011 could be a watershed year with major changes expected in consolidation and competitive landscape.  There are 14 service providers in India broadly categorized into two groups - incumbents and new entrants. Read the rest of this entry »

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