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After Airtel & Idea, Vodafone Too Slashes Mobile Data Plan Tariffs. Jio Scare?

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When Airtel and Idea Cellular increased their data quota for the existing tariffs, we were very sure that Vodafone will soon be following the same strategy to counter Reliance Jio LTE services. Reliance Jio services have disruptive prices targeted at these telecom leaders.

Like Airtel and Idea Cellular, Vodafone tariffs too will remain the same, but the data quota offered will be higher now, up by almost 67%. For example, a monthly pack of Rs. 650 that offered 3GB 3G/4G data will now offer 5GB data for the same price.

In a statement, Vodafone said, “It will also make the Internet more affordable for customers who use mobile internet in a limited way and encourage first time users to come online.” It is a clear case of fear from Reliance Jio, and the wordings from Vodafone could not have been more subtle.

Similar to the revision above, the Rs 449 3G/4G pack will now offer 50% more data, with 2GB quota increased to 3GB, while the Rs 999 3G/4G pack will now offer 10 GB data, instead of 6.5GB initially.

Vodafone has also increased the data quota for its sachet packs. The Rs. 12 3G/4G sachet pack will not offer 50MB of data instead of 30MB data, and the Rs. 39 2G sachet pack will now offer 225MB of data instead of 160MB. 2G,3G and 4G data is a very crucial service for telcos considering the internet revolution.

Revised Vodafone Mobile Internet Rates

Mobile Internet Pack Previous Data Allocated Current Data Allocated Savings
Rs. 650 3G/4G Pack 3GB 5GB 67%
Rs. 449 3G/4G Pack 2GB 3GB 50%
Rs. 999 3G/4G Pack 6.5GB 10GB 54%
Rs. 39 2G 5 Day Validity Pack 160MB 225MB 41%
Rs. 12 3G/4G 1 Day validity Pack 30MB 50MB 67%

**The pack prices mentioned are indicative and may vary from circle to circle.

What’s driving this trend?

The launch of Reliance Jio LTE services to the public is a major driver for these telcos to rethink their pricing strategy. However, one can’t deny the data consumption needs of the people these days – more than half a billion Indians will be online by 2020 and there needs to be a regulation in this space.

The average daily consumption of data in India is also on the rise, and no one wants to settle for higher tariffs and low data. Airtel, Idea Cellular and Vodafone are trying hard to woo new customers, while laying more stress on retaining the existing ones.

These three telecom providers have nearly 70% of the market, and the dynamics can change in the coming months as Jio attracts customers looking for high-speed internet at low prices. Is price reduction enough for users to stick to the same telco? We should have the answers once Reliance Jio goes live to the public this month.

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