Telecom operators are now eyeing reduction in 2G and 3G rates as they target data-voice bundling in a bid to enhance market share even as they discount any possibility for further cuts in cellular tariffs despite impending entry of new players like Reliance Jio.
“Data prices in India are already one of the lowest in the world…. convergence will take place either by an increase in 2G rates or decrease in 3G rates while asserting that there is little scope for further cut in data rates,” said Subrat Padhi, Business Head- Delhi, Vodafone India told The Pioneer. “Companies are already operating at the lowest margins and there is no scope for further cuts in the tariffs, “ he said even as he refrained on commenting on the any possible tariff-wars in the coming months with the recent conclusion of the recent spectrum auction particularly with entry of Reliance Jio.
Operators like Idea, MTS and Vodafone are now gearing up for 2G and 3G convergene along with data-voice bundling at reduced prices. With a spurt in smarphones in the handset market in recent times, the telceom companies now see a emerging market for these bundled services. Overall data growth has been at 60 per cent with the 3G growing at triple digits. There are over 50 per cent HSPA users who are still either on 2G or not using data at all, said Vodafone India. With this, Vodafone India has said that it plans to target those 50 per cent of HSPA users who are still on 2G or still not using data.
When it launched 3G services in 2010-11, the 3G tariffs were 6-7 times higher than 2G but this difference has now been reduced to just 1.5 times, he said. “We brought down the 3G data prices around four months back and we expect 2G and 3G prices will converge in near future,” Padhi added. Taking the lead to reach out to the smartphone users in Delhi and National Capital Region (NCR), the company launched ‘Be Smart’ mobile Internet initiative, which is focussed at tapping non-3G users.
The company has around 92 lakh users in Delhi and NCR and only around 1/8 of them use 3G currently. The 3G data users are growing at over 100 per cent on year on year basis. “A visible spurt in the demand for smartphones indicates a growing need for high speed connectivity. Basis our insights, we feel there is tremendous potential for customers using latest technology enabled handsets to adopt 3G on their phones to get the best experience,” Padhi said. The company, which has around 25.7 per cent revenue market share in Delhi and NCR, has over 4,000 3G sites in the region.