Airtel slashes data tariffs as RJio launch approaches

Mobile data plans of major telecom operators are going to get cheaper to take on Mukesh Ambani's Reliance Jio.

Bharti Airtel on Sunday announced increasing data benefits by up to 67 percent, in effect cutting data tariffs for prepaid customers.

Under the revised data benefits, the Rs. 655 4G/3G monthly recharge pack will now offer 5GB data against the 3GB limit earlier, amounting an increase of 67 per cent in data benefit.

Similarly, the Rs. 455 pack that offered 3G/4G data with a cap of 2GB will now offer 3GB of data at the same tariff — an increase by 54 per cent. Also, Rs 989 4G/3G pack will now offer 10 GB data against the 6.5 GB cap earlier.

Moreover, 2G/3G/4G sachet packs also see increase in benefits by up to 48 per cent. The Rs. 25 2G pack now offers 45 per cent more data at 145 MB, as against 100 MB earlier. The Rs. 5 one day 2G data pack benefits are increased by 48 per cent to 30 MB.

Initial rate cuts are just for prepaid customers that currently make up more than 90 per cent of subscriber bases, and are considered more vulnerable to switching operators.

“These refreshed data packs will help drive consumption and boost the uptake of mobile internet in the country. Given the deepening smartphone penetration and Airtel’s roll-out of data networks across India, we believe these packs will also drive affordability and bring new users online,” Bharti Airtel Director Operations (India and South Asia) Ajai Puri said in the statement.

Airtel’s announcement comes a few days after the slashed data tariff plans announced by Idea cellular in the face of approaching Reliance Jio Infocom's 4G launch.

Analysts note that telcos aren't reducing rates directly, but offering more data for the buck, a strategy that will help them protect crucial average revenue per user (ARPU) and at the same time, make offers more lucrative for users.