Reliance Communications offers 3G services at 2G price

Reliance Communications on Thursday announced 3G services at 2G price in select telecom circles.

The telecom operator hopes that it will be able to attract more mobile users in India.

India’s third largest telecom service provider (telecoms) says the price for 1 GB of 3G data will be Rs 123.

It will price Rs 246 for 2 GB and Rs 492 for 4 GB. This means, Reliance Communications is offering around 50 percent discount to its earlier 3G tariffs.

The billionaire Anil Ambani-promoted Reliance Communications is really aggressive as the company seeks to bring mobile users from other telecoms through a special MNP offer as well.

New customers coming to the Reliance network through MNP will get 1GB of 3G data free per month for two months.

The state-run MTNL was the first Indian telecom operator to offer 3G at 2G prices.

In June 2013, Bharti Airtel, Idea Cellular, Vodafone and Tata Teleservices slashed their 3G and 2G data rates by up to 90 percent in select circles.

However, these reductions were for usage after exhausting limit provided in internet package.

Reliance Communications has 3G services 13 circles including Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, Jammu and Kashmir, West Bengal, Himachal Pradesh, Bihar, Odisha, Assam and North East.

“By breaking the 3G entry barrier, we plan to bring about a behavioral change and take the benefits of quick data access to everyone and impact not just lives, but lifestyles as well,” said Gurdeep Singh, president and CEO, Wireless, Reliance Communications.

Reliance CEO Gurdeep Singh

The company’s 3G network is supplemented by IP back-haul for superior data usage experience.

But analysts are cagey about this special offer.

“We don’t foresee Reliance Communications’ rate cut to have material impact on other telecoms due to its poor perception of brand and service and its inferior 3G network presence. Rcom has around 11,000 3G BTS vs. 25000 for Bharti Airtel and 17,000 for Idea Cellular,” said an analyst with a top security firm.

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