Chennai: Call it the Reliance Jio affect. Telecom leader Airtel officially launched a price war in the data market on Thursday with a slew of offers. Industry insiders say the start of the price war has been triggered by the impending launch of Reliance Jio by the end of this year, forcing incumbents to cut down prices and attract as many customers into their fold as possible.
Airtel announced a data cash back offer through which consumers would get back 50 per cent of the data (2G/3G/4G) they used between 12 am and 6 am. The cash back would be credited to their account the next morning. By subscribing to the pack, consumers essentially pay only for half of the data consumed during wee hours. While Airtel prepaid mobile customers can avail of the offer from Thursday, it will soon be extended to postpaid customers, said Srini Gopalan, director – consumer business at Airtel.
Interestingly, similar to the postpaid package myPlan that allows users to share data plans, prepaid users would now be able to share their data plans among four family members, he added.
Without commenting on the looming price war, Gopalan added: “This is essentially a continuation of our journey to become the preferred smart phone network. We started this journey about 15 to 18 months ago. The idea is that when you buy data plans, it is not just mega bytes or giga bytes alone that you purchase, but the whole package.”
In that context, Airtel also launched the Smartphone Surprise offer on Thursday. Customers who upgrade their mobile device on Airtel prepaid will be entitled to gifts ranging from double data benefits, free data for a year, tablets, blue tooth speakers and headsets.
Both existing as well as new customers can avail the offer by buying a smartphone from the Airtel Surprises web page. All prepaid customers buying a smartphone from Snapdeal would get an additional onetime offer of Rs 750 off on the device.
The company also announced unlimited music downloads for free on the Wynk Music app and five films for free on Wynk Movies. The mobile offers follow Airtel’s price reduction move on the broadband front in August. The initiatives gain significance given the launch of Reliance Jio in December. Another telecom major Aircel recently announced free basic internet on its voice packages in Tamil Nadu, where it leads the market.
Said Sankara Narayanan, strategic business head – south of Aircel: “Mobile internet has become a way of life for many. This product is in line with our promise of ‘doing a little extra’, and we’re confident that it will appeal to a large number of our users across the circle. It is a fact that with each passing day, the need of our customers to have data access on their mobile phones is increasing manifold. At a time of the data revolution, it is important that we take steps in the right direction to enable affordable data access for all our customers. This product is in line with our vision to empower all our customers with easily accessible data.”
While the other telecom operators have not launched big reductions so far, their prices are competitive to market rates, said a senior official at Vodafone, who did not wish to be named.
The second largest telecom player has confirmed that it will launch 4G services by the end of 2015. Important data markets including Mumbai, Delhi, Kolkata, Bengaluru and Kochi will be part of the first wave of the roll out.
In addition, Vodafone India will also roll out its own 3G networks in seven circles, Assam, North East, UP West, Rajasthan, Karnataka, Kerala and Odisha, to expand its overall 3G footprint to 16 circles across the country.
The most expected launch of the year though is that of Reliance Jio, which is entering the market after five years of acquiring spectrum. It has to launch operations before the end of this year to meet license conditions. However, it is still unclear whether Reliance would launch data services alone or would enter the voice business as well.
“Jio started aggressive work on the ground over the last three to four months. It has been setting up teams across the key markets where it would launch operations before the end of this year. Jio has been testing its services across regions through promotions, including providing test Wi-Fi services at company events and conferences. We are testing in all key markets and in regions where the other operators are testing theirs, such as in Kochi. We are gearing up for the launch,” said an official of Jio, who did not wish to be named.
