Idea Cellular slashes 2G data rates

New rate will be two paise per 10 KB from existing two paise per KB in all circles it operates

Following the footsteps of Vodafone and Bharti Airtel, Idea Cellular today announced that it has reduced 2G data tariff to two paise per 10 KB from existing two paise per KB in eight circles — Tamil Nadu & Chennai, Karnataka, Kolkata, West Bengal, Assam, North East, Bihar, and Orissa.

Starting July 1, the new rates will be valid for 90 days. It had 21.57 million data users till March 31, 2013, up from 18.9 million during the previous quarter. Of this, 4.1 million are 3G customers. Data subscribers contribute about 5.7 per cent of Idea Cellular’s service revenue annually.

On Tuesday, Vodafone  had announced reduction in 2G data rates in three operating circles from 10 paise to two paise for 10KB, followed by Bharti Airtel which cut data tariffs in two circles on Tuesday to one paise from 10 paise per 10 KB.

However, all the telcos had increased data prices by about 25 per cent in January.“Idea has continuously focused at growing data penetration in tier-II & tier-III markets.

These eight circles comprise of one third of the total mobile users in India, with a large number of users waiting to board the mobile broadband wagon. Availability of data at such affordable rates will usher in a new wave of mobile data growth in the country,” said Ambrish Jain, Deputy Managing Director, Idea Cellular.

The revised tariff is applicable for all 2G data users who use on pay-as-you-go basis, and also on overage on the regular data packs. Vodafone has 37.3 million data users in India, of which 3.3 million are 3G subscribers as of March 31, 2013. Bharti Airtel, India’s largest telco by subscriber base, has 43 million data users, of which six million are 3G subscribers.

During the quarter ended March 31, 2013, Vodafone’s data revenue increased 50.5 per cent to Rs 2,000 crore, which is seven per cent of its overall revenue.Bharti Airtel’s data subscribers rose 22 per cent during the quarter and its data revenue per user increased 25 per cent.

It gets 6.5 per cent of total revenue from data.

In January this year, Bharti Airtel, Vodafone and Idea Cellular had increased the rates for 2G data, which contributes about four per cent of their revenues, by 25 per cent, while keeping 3G prices unchanged to reduce the gap between 2G and 3G rates.