Idea Cellular targets heavy internet users who consume data packs of 2 GB to 10 GB with the second offer in the last two weeks. The strategy of Idea Cellular is to sell maximum GB at affordable price at a time when both Reliance Jio Infocomm and Bharti Airtel are in the process of expanding their mobile Internet presence.
Reliance Jio Infocomm, which is flexing muscle with an all IP network, last week celebrated its achievement by saying it has more than 1.5 million mobile data users on trial basis. The most interesting development from Reliance Jio was the fact that these 1.5 million users consume around 26 GB of free data. Mobile data consumers of both Airtel and Idea Cellular use less than 1 GB per month.
Data price war
Incidentally, Vodafone India did not make any cut in mobile data price in order to respond to the latest data price from Bharti Airtel and Idea Cellular. BSNL, Reliance Communications and Tata Docomo are also silent on the data war. Consumers are thinking that the correction in data price will not fetch any gains for them unless telecoms start making investment in networks. Bharti Airtel was the only telecom to announce Rs 60,000 crore investment in the next 3 years.
Last week, Idea Cellular announced the price reduction by 45 percent in its sachet data packs for pre-paid subscribers.
On Sunday, Bharti Airtel announced up to 67 percent cut in sachet and monthly data packs for its pre-paid subscribers. Airtel’s announcement was a response to the data price strategy of Idea Cellular.
Idea and data plans
Idea Cellular has become the first telecom operator in India to slash data price for the company’s post-paid users — this year.
Idea Cellular is now offering 10 GB 4G, 3G data pack for Rs 990. Idea Cellular is offering 2 GB data for Rs 349 against the earlier price of Rs 449.
Idea Cellular is offering 5 GB of 4G data / 3G data at Rs 649, providing 67 percent more value than 3 GB data earlier.
Sashi Shankar, chief marketing officer of Idea Cellular, said: “While the price reduction in our sachet data packs was aimed at inducting more users into the world of internet; the reduction in rates of BIG Recharge packs now, is aimed at delivering significantly higher Value for Money to our regular internet users.”
Idea Cellular, an Aditya Birla group company, has launched new Freedom Packs for prepaid users, starting at Rs 35 with 4 weeks’ validity, giving freedom from multiple recharges and the constant hassle over expiry of plans.
Idea and spectrum
The Indian telecom industry is watching for additional investment from Idea Cellular in spectrum. India will be conducting the next round of spectrum auction in September. For both Vodafone and Idea Cellular, the spectrum auction will be crucial to stay in the mobile Internet business.