India’s largest mobile network carrier Bharti Airtel has pulled off an expected maneuver with regards its 3G tariff portfolio. The mobile network major on Thursday slashed the ongoing price slabs of its 3G plans by up tp 70 per cent. This is the first price slash by the serving network operator in over three years. The price slash can be deemed as of an irregular nature since it has arrived in the wake of an ongoing struggle between TRAI and major operators who are of the view that if the regulator is to accept Government recommendations, mobile tariffs might see a steep price rise, to the tune of 100 per cent.
Despite the fact that relentless and ruthless price wars over the past 3 years have significantly pulled down the profitability of mobile companies, Airtel’s move to slash prices by more than half may very well prove to be a game changer as far as market dynamics are concerned. Moreover, this move is also perceived as a spoiler for the joint efforts of mobile cos. to raise voice tariffs, a struggle which has been gaining momentum over past 12 months.
As per industry executives, in the competition arena, Bharti puts up defense against the biggies of the GSM space i.e Vodafone Essar and Idea cellular. A similar price cut is expected from these operators as well. According to an Idea executive, the company plans to usher such a tariff holiday in areas of its limited presence.
Bharti’s price cuts are aimed at enticing more and more users to avail premium data offerings. Within 18 months of the launch of 3G services, Airtel has managed to gather coalesce a base of 9 million data plan users. Airtel’s revised 3G plans shall offer 30 minutes of 3G internet browsing for Rs 10. The data download on existing plans has been raised. 3 paisa per 10 kb of download will be extricated from post and prepaid users which is 70 per cent lower than previous rates.
Via: Economictimes