Vodafone slashes 2G data tariffs by 80 percent
Vodafone slashes 2G data tariffs by 80 percent
While telecom companies gear up for the
fourth generation broadband services and continue to expand the 3G
coverage in India, telecom giant Vodafone has announced a massive 80 percent cut in its 2G data tariffs.
New rates will be initially available in
Karnataka, UP (West), Madhya Pradesh and Chhattisgarh. Vodafone plans
to roll out the new tariffs in rest of the country in a phased manner.
As per the new tariffs, Vodafone will be charging 2p/10KB, down from the
previous 10p/10KB.
Vivek Mathur, chief commercial officer,
Vodafone India, says: "The overall internet penetration in India is low
while the mobile penetration is several times higher. Most consumers
will discover the power of the internet via the mobile. We want to
accelerate mobile internet adoption through penetration, consumption and
value addition."
Vodafone's new tariff is likely to
attract new data users as well as help the telecom giant generate more
revenue from the second generation wireless technology, which still has a
massive presence in the country. Earlier this year, Airtel had raised 2G data rates in a bid to improve margins and cover costs. Fortunately, other telecom operators didn't follow the suit.
Vodafone's move is likely to trigger new price war in the 2G segment. Last year, the telecom operators were involved in a similar price war in the 3G segment – though ultimately helping growth of mobile Internet and adoption of 3G network.
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