HOME > BUSINESS > With tariff change, Idea Cellular 4G data now cheaper than Reliance Jio

With tariff change, Idea Cellular 4G data now cheaper than Reliance Jio

Idea 4G tariff plan

With Reliance Jio raising the price of its 1GB-per-day pack from Rs 309 to Rs 399, Idea Cellular has managed to beat the new operator in this segment, though not by much.

Idea Cellular offers 1GB/day for 84 days at Rs 397, making it cheaper by 2 rupees. Though Idea’s scheme is not listed on its website, it is available to almost all 4G users on their selfcare app.

In other words, both Jio and Idea now offer 1 GB/day at about Rs 143 per month.

That pricing is also comparable to a similar plan from Bharti Airtel that provides 1 GB per day for Rs 150 per month, but without the free call facility.

END OF DOG DAYS?

Though the impact of the tariff plan may not be much, it does mark a milestone — an achievement of parity — in the battle between the incumbents and the challenger.

Since it began operations nearly a year ago, Jio had been unassailable in terms of pricing.

The company’s offerings were priced at half, or even a third, of what comparable plans cost on rival networks.

However, the Mukesh Ambani-led company has to make money too, and to this end, it has set in motion a slow and gradual chain of events to get its users to pay more for voice and data.

For example, for the last three months, they were getting 1 GB per day and unlimited voice for about Rs 100 per month. But, starting from July 15, they will get it at about Rs 150 per month.

The company’s aim is to eventually raise it to Rs 300 per month.

How long it will take to achieve this target will depend on the impact of the current price change from Rs 100 to Rs 150.

If it finds a lot of abandonment — people simply refusing to recharge when the price is increased — it will introduce its next price increase later, perhaps towards the end of 2017.

If, on the other hand, abandonment rates are low, it would take a step towards increasing the price to 200 or 250 in October, potentially reaching the 300 mark by January.

At 300 rupees per month, the incumbents can — with some difficulty — compete with Jio, at least as far as data is concerned.

VOICING PAIN

However, this hardly means that the pain is getting over for the incumbents. In fact, the real pain may be only just beginning.

That’s because of the possibility of the Ambani firm taking aim at the incumbents’ cash cow — voice services.

Jio provides unlimited voice calls for Rs 150 per month, while the incumbents offer unlimited voice calls at Rs 350 per month.

Yet, the newcomer has not been able to disrupt the voice market as radically as it has been able to impact the data market. Data prices have fallen by nearly 50% since Jio launched, but voice prices have fallen only by around 20%.

Idea’s voice pricing, for example, fell to 26 paise last quarter from about 33 paise a year earlier. In contrast, its data price fell by half to 11.5 paise per MB from about 23 paise in the same period.

Because of the resilience exhibited by voice prices, the incumbents have not yet faced the full impact of the new entrant on their voice business that contributes about 80% of their profit.

This has been because of three reasons — all related to the quality of hardware available in the market.

First is device price. Jio’s voice works only on higher-end phones with 4G VoLTE, and these cost at least Rs 3,500. Many people are unwilling or unable to make a one-time investment of Rs 3,500 to save Rs 100 or 150 per month on voice bills.

The second factor is ease of use. Many — especially those above 40 — do not like to operate touch-screen devices. They prefer the simplicity of a bar phone, and are confused by the smartphone.

The third factor is sturdiness. Full-touch devices are fragile, and are often destroyed at a single fall. This keeps many customers — especially those that do not use much data — from going for a smartphone.

All these three factors are expected to be addressed by Jio with its upcoming feature-phone.

With a reported price tag of Rs 999, the device will address all the barriers that have so far been holding back more widespread adoption of the company’s voice services.

If, as a result, the incumbents are forced to cut their voice tariffs by another 35%, it would seriously impact their ability to remain profitable concerns.

Follow ULTRA.news
Reliance Jio offers iPhone 8 at Rs 9,200 effective price, here’s how to book Reliance Jio has opened pre-booking for the new Apple iPhone with an effective price of just Rs 9,200 under a dual cashback offer.The sticker price of iPhone 8 is Rs 64,000 in Jio stores.However, if you buy the device along with a 12 month contract of services from Jio,...
Why Reliance Jio’s new 90GB-for-799 plan is bad news for Bharti Airtel, Idea Cellular Reliance Jio, the country's largest internet service provider, will unveil a new tariff plan for iPhone 8 users that will offer 90 GB of 4G data for Rs 799 over a 28-day period, media reports said.That works out to Rs 8.88 per GB, which is almost half the rate valid for a com...
Bharti Airtel dismayed, Vodafone disappointed by TRAI IUC cut As expected, incumbent telecom operators have expressed their disappointment with the regulator going ahead with cutting the interconnect charges paid by one operator to another at the time of handing off internetwork calls.The operators are likely to approach the government ...
Ambani suddenly looks like the smart guy after TRAI termination charge cut Operators such as Bharti Airtel, Vodafone, BSNL and Idea Cellular are likely to cut call tariffs for 2G and 3G users after TRAI decision to cut 'termination charges' to 6 paise per minute from 14 paise.More importantly, the bet that Mukesh Ambani placed by making voice free s...
Idea Cellular raises 4G plan prices by 25%, 84-day pack now at Rs 505 Even as Reliance Jio continues its slow move towards 'full pricing' of its services, rival Idea Cellular has taken a step towards increasing promotional 4G pack prices across its tariff cards.While the operator was offering 1GB data per day for 84 days at around Rs 400 in ke...
50% of Idea Cellular cell-sites now have 3G or 4G Idea Cellular said it has now achieved 3G or 4G penetration for 50% of its cell-sites."Idea added nearly 50,000 broadband sites over the last 12 months period ending August ’17, growing its broadband footprint to cover 5,888 Census towns and nearly 105,755 villages, reaching...
RCom to shut down 2G GSM network in Gujarat Reliance Communications said it has asked subscribers in Gujarat to move to its 4G network as its 2G spectrum in the state is expiring at the end of this month."The Company has initiated migration of its customers in Gujarat circle to an all 4G network, prior to expiry of 2G ...
Bharti Airtel starts VoLTE roll-out, service live in Mumbai Bharti Airtel launched its Voice over LTE (VoLTE) services today, starting in Mumbai, and said call charges will remain the same.Airtel VoLTE, which works over 4G, will offer customers HD quality voice calls along with faster call set up time."Airtel VoLTE will be availab...
Bharti Airtel unveils 5GB-per-day 4G pack Bharti Airtel has become the first operator in India to break the 2GB-per-day cap under its daily data plans, offering up to 5GB per day under its various plans. Under the new plans, customers can recharge for various denominations that allow them to get 1 GB, 2 GB, 2.5 GB, ...
Reliance Jio corners 91% of data card market; could hit BSNL broadband The shipments data cards or dongles in India jumped 15% in Apr-June period compared to the previous three months, thanks to aggressive sales of Reliance Jio Mifi devices.The Ambani company had a 91% share of the dongle market in the country during the period, said CyberMedia...
BSNL to “shortly” launch 4G with VoLTE, Reliance Jio to face competition Players like Bharti Airtel, Idea Cellular and Vodafone are heaving a sigh of relief that Reliance Jio has not unveiled any 'monsoon surprise' offer. However, state-owned BSNL may be about to increase the competition in the market with the launch of its 4G services shortly.An...
Idea launches 4G in Srinagar, offers 84 GB for Rs 392 Idea Cellular, India's third largest telco by revenue, launched its 4G services in Srinagar.This is the 26th town in Jammu & Kashmir to get Idea 4G services, which are also present in Jammu, Udhampur, Katra, Samba, Poonch, Rajauri, Kathua, in addition to Srinagar. "Idea ...
End of freebies? Vodafone prices 1GB/day for 28 days at Rs 392 With Reliance Jio not showing any signs of unveiling yet another 'surprise' offer, telecom tariffs in India seems set to rise, particularly for data.Vodafone today announced an new tariff pack that offers 1 GB of 3G or 4G data and free calls for Rs 392. However, unlike simil...
Reliance Jio hits 10% revenue market share – Credit Suisse New telecom operator Reliance Jio is estimated to have notched up a market share of around 10.5% in terms of total telecom revenue in India, broker Credit Suisse said.However, after deducting interconnect payments made to rivals, Jio's share is likely at around 9%, it said. ...
JioPhone booking starts at 5:30 PM today at Reliance Jio stores The Mukesh Ambani-led telecom operator is likely to start prebooking for its JioPhone device at 5:30 PM today, according to sources.Booking can done in four ways -- using the company's website Jio.com, using the MyJio app and by going to a either a Jio Store or any multi-bran...
Reliance Jio starts turning off free services, urges users to recharge Reliance Jio, the telecom firm that has caught the country by storm, has started turning off the connections of those subscribers who have not recharged their mobile phones since the beginning of April.In April, it had introduced the Summer Surprise offer, and gave around fou...
Idea Cellular likely to expand 4G offers this year Idea Cellular, India's third biggest telecom player by revenue, is likely to see its 4G data capacity rise to three times the current level over the next nine months, which is likely to push the price of data down further.This could impact Reliance Jio's ability to stop its d...
Vodafone slashes 4G offer prices after Airtel, Idea reveal explosion of data Vodafone India renewed efforts to promote its cut-price voice and data offerings in recent days as the latest quarterly numbers from rivals Idea Cellular and Bharti Airtel suggested they had given out bigger discounts in the April-June period than anyone had expected.Earlier ...
Bharti Airtel will launch VoLTE next year Bharti Airtel is still testing its 4G voice or Voice over LTE service and a pan-India launch will take place only by January-March of 2018.Gopal Vittal"VoLTE is a very complex technology," CEO Gopal Vittal said. "There is a lot of optimization. It has to be tested device...
No plans to launch JioPhone rival – Bharti Airtel Bharti Airtel, India's largest telecom provider by revenue, said it has no intention of launching a rival phone similar to the super-cheap semi-smartphone launched by rival Reliance Jio.Asked if the company needed to come out with a similar, affordable handset to compete with...
Telecom license fees fall 23% as Reliance Jio hits call, data prices The license fees paid by telecom operators in India to the central government fell by 23% to 2,663 crore in the three months ended March compared to the previous three months, the government said.Compared to nine months earlier, the fall was 33%.Telecom access providers, ...
HALVED: Bharti Airtel’s data price crashes to Rs 60/GB due to Reliance Jio Bharti Airtel was forced to slash its data price by half to about Rs 60 per GB in the April to June period of 2017, the latest numbers revealed.In contrast, Bharti Airtel was charging around Rs 125 per GB in the three months from January to March of this year. A year ago, it ...
Bharti Airtel profit down 75%, says market remains “turbulent” Bharti Airtel Limited reported a drop of 14% in its revenue for the first quarter, at Rs 21,958 crore. Adjusted for sale of its units, the drop was 11%, it said.Net profit fell 75% to 367 crore rupees for the first quarter. Operating profit was down 18%.India revenues for...
Bharti Airtel Q1 revenue up 10%, profit down 12% Tower provider Bharti Infratel reported a 10% growth in its revenue and profit for the first quarter.The Consolidated revenues for the quarter, at Rs. 3,524 Crore, was up by 10% over the corresponding period last year.Consolidated profit from operations improved to Rs 1,...
Is the Reliance Jio’s JioPhone really free? The latest entrant to India's telecom market, Reliance Jio, has announced an unprecedented offer -- a 4G enabled phone with support for apps and videocalling for free.According to Mukesh Ambani, customers do not have to pay anything for the phone as the cost of the phone will...