 "Touchscreen cellphone")
The much-awaited disruption in mobile data pricing has been kicked off by Reliance Communications (RCom). It is offering 10 GB of 4G data bundled with 150 voice minutes for Rs 93 a month. In some states, the company is offering these packs for Rs 75 to Rs 97 per month.
RCom is in the process of moving its CDMA subscribers to its GSM network by offering voice and 4G data at attractive prices. The promotional tariffs are being offered to move CDMA subscribers to the 4G platform, which it is offering in alliance with Reliance Jio. Aithough this offer is currently available to only existing CDMA subscribers, the move is disruptive nonetheless analysts say. The scheme has been launched in nine circles — Andhra Pradesh, Maharashtra, Uttar Pradesh (East), UP (West), Madhya Pradesh, Mumbai, Gujarat, Delhi and Kolkata.
Read more from our special coverage on "4G"
While subscribers can purchase handsets on RCom's website, no discounts are being offered on handsets of any make or brand, which means CDMA users would need to invest in new 4G GSM mobile phones. Some analysts believe this may restrict adoption. According to Religare Institutional Equities, “RCom’s 4G pricing plans, although promotional, still look very aggressive. Its CDMA users (prepaid) can upgrade to 4G for a monthly recharge of Rs 75-97, they will get 150 free voice minutes, free on-net calling and 10GB of 4G data. In contrast, the monthly average revenue per user for incumbents is Rs 179-194, where they provide Rs 400 free voice minutes and Rs 750MB of data per subscriber.”
Incumbents have so far waited and not actively indulged in any price war. However, analysts say of late, they have started tinkering with their 4G tariff plans. Idea, for instance, offers one GB of 4G data at Rs 249 in several states, which is similar to pricing of 3G data packs. Airtel currently offers one GB of 4G data to postpaid customers with free unlimited calls to other Airtel numbers and music for Rs 649 a month. For prepaid customers, Airtel offers one GB at Rs 250 with a validity of 28 days and Rs 995 for 10 GB.
Jio too is kicking off a trial for new customers. According to some reports, the company has asked employees to refer up to 10 potential customers who would like to test the 4G service for a period of three months.
The customers will need to buy a Lyf handset and will get unlimited data and voice free for three months. However, this mail has not been widely circulated and has been sent only to select employees.
