Following in the footsteps on Airtel, Vodafone and Idea which slashed 2G rates in some circles a couple of weeks back, Videocon Mobile Services has also slashed 2G rates by 90%.
The new rate will be 1 paisa per 10 kb and will be available in the Punjab, Haryana, Gujarat, Madhya Pradesh & Chhattisgarh circles. This will be applicable on consumption beyond respective data packs, the company said.
Vodafone hopes this move will accelerate mobile internet adoption and data penetration across its telecom circles. Vodafone says that their network is 2.75G EDGE which offers connections better than 2G and closer to 3G.
This new data tariff will be applicable from this week itself.
While Airtel offers 2G data at 1 paisa per 10 kb, Vodafone and Idea are offering 2G data at 1 paisa for 10 kb. There rates are applicable only for select circles.
Considering that most Indian smartphone users still don’t have a data connection on their phones, this could go a long way in increasing data penetration.
Why are Telcos cutting 2G rates?
With telecom companies fearing that they would have to shut down 3G in certain circles because of a telecom department ban on offering 3G in circles without licenses, companies have started slashing 2G rates to retain data customers.
In April, The Delhi High court has vacated a stay order which permitted Airtel to operate 3G services in circles where it does not have spectrum license. In places like Gujarat, Maharashtra, Goa and Kolkata, Airtel offers 3G services through agreements with rival Vodafone. However, with the stay order out of the way, Airtel may have to stop offering 3G services in these circles.
Other operators use similar arrangements to offer 3G in circles they don’t have license for.