Tata Docomo slashes 2G and 3G data rates by 90%

Tata Docomo slashes 2G and 3G data rates by 90%

Tata Docomo slashes 2G and 3G data rates by 90%

After Vodafone, Airtel and Idea, Tata Docomo earlier this week announced slashing 2G and 3G mobile data rates by up to 90 percent. From July 1, Tata Docomo will be charging 1p per 10 KB, down from 10p per 10 KB. The offer is available for GSM subscribers of Tata Docomo across 19 circles.

On recharge of Rs. 126, Tata Docomo is offering 2GB of 2G data for 30 days. The operator is giving 2.5 GB and 3GB of 2G data for Rs. 149 and Rs. 249 respectively. For 3G, the company is offering 2GB for 30 days at Rs. 255.

"This (the offer) will increase data penetration across segments and a 90 per cent discount will serve as a customer friendly yet clear differentiator for our customers," Tata Docomo's Head of Marketing Gurinder Singh Sandhu says in a statement.

"Once customers exhaust their free 2G or 3G data quantum, they can continue to access high speed mobile Internet by paying only 1 paise per 10 kb instead of the earlier 10 paise per 10 kb data," it added.

Tata Docomo's price cut of 2G data rates seemed inevitable after telcom giants such as Vodafone, Airtel and Idea Cellular announced massive price cuts in their data charges by up to 90 percent.

The recent price war in 2G segment is certainly going to benefit smartphone users and other mobile users looking for cheap Internet plans. From companies' point of view, the move will help increase subscribers base in the country.

According to Mahesh Uppal, director, Com First (India), says, “The companies are trying to expand the over-all appeal of data services. This means making them affordable to low income users of 2G.” However, Mr. Uppal added it was unlikely that the move will help telecom companies recover costs and improve margins.