Data price war in India. Boon for customers.
Telecom operators in India are going haywire with their data plans and to attract the customers, and its a boon time for all mobile data subscribers in India.
After Indian tycoon Anil Ambabi announced Reliance Jio mobile service, which is innovative in all ways to the Indian market and providing the cheapest data plans in the world, setting the stage for a predatory price war in the nation’s booming telecom industry.
Analysts called the long-awaited launch a “paradigm shift” and “game changer” in India’s telecommunications sector.
Addressing the annual shareholder meeting of his company Reliance Industries in Mumbai, the billionaire oil and gas magnate, Mukesh Ambani, said his new service, called Jio, will “transform India from a high-priced data market to one with the lowest rates anywhere in the world.”
“The era of paying for voice calls is ending,” Ambani, 59, announced amid loud applause, unveiling what could be India’s largest 4G network covering nearly 90 percent of the country. “Customers should pay for only one service, voice or data, not both.”
Ambani’s 45-minute speech was aired live on all television channels. Some called it India’s “Steve Jobs” moment.
The new service will charge about 75 cents per gigabyte of data, which is one-fourth of what competing companies charge today.
“The supply of oxygen for digital life must never be unaffordable for any user,” Ambani said.
Competitor Bharti Airtel’s shares dropped 8 percent and Idea Cellular’s fell by 9 percent on the Bombay Stock Exchange. Together, the two companies lost $1.8 billion in market capitalization.
While data benefits announced by Airtel and Idea are more or less similar (both are offering similar amount of bonus data to customers), Airtel’s monthly pack is priced marginally higher than Idea.
With more and more price slashing being offered by the other telecom operators, this is going to be a jolly time for all the data hungry subscribers in the country and enjoy the benefits of the price war.