Tech Telecom

Mukesh Ambani’s Reliance Jio Infocom begins the price war in telecom industry. Major players such as Airtel, Vodafone and Idea Cellular also reduced data rates and also existing packs now comes with more data. As Jio started offering free unlimited voice and data packs, other providers also started reducing rates to grab customer attention and hold existing customers.

Jio has now 1.5 million users as they initially started tests through its employees from last year. As currently Jio services can only be accessed using Lyf handsets provided by Reliance starting at Rs. 3,000. And, some samsung handsets are also compatible to use Jio services, you can get the Reliance Jio 4G service for free after following a short process as per their guidelines. Reliance is attracting more customers by sending invitations to mail boxes.

As currently, the Reliance offers are new and not known in most locations, it has started creating ripples in the competitive telecom industry. Ambani’s freebies – that company officials says Jio services will be available for free till commercial operations starts- as the new excitement is seen in customers enjoying free services totally.

Following Reliance Jio services major telecom operator Airtel also reduced the threshold for plans where it also offers free voice only to postpaid customers. The ‘Infinity’ plan is now available from Rs 1,199, which packs in unlimited voice calling (local, STD, and national roaming) along with 100 free SMSs per day, 1GB 3G/4G data along with free services subscription such as Wynk Music etc. Previously, this was available from Rs 2,000.

Vodafone being one of the largest telecom service provider also added additional 67% data on its prepaid packs to provide more data at the same previous rates. The company announced a lucrative offer – Vodafone Delights – which promises free 10-minute talk-time to all customers whose conversations get interrupted for any reason (including call drops). It is part of a “month-long bonanza” and thus limited in its validity. And, the free talk-time can only be used for Vodafone-to-Vodafone connections. To avail the talk-time benefit, customers need to SMS ‘BETTER’ to 199 and talk time of 10 minutes will be credited immediately to their numbers. “Each conversation on our network is important and must carry on uninterrupted. At times, however, conversations do get interrupted. To continue such conversations, we are offering 10-minute talk-time benefit – no questions asked,” said Sandeep Kataria, director of (consumer) at Vodafone India.

Idea Cellular also followed up the race and added benefits to its smaller prepaid data packs (below 1 GB) as it increased value for customers. To counter Reliance Jio, the three telecom companies are working on increasing customer base and expanding 4G operations and introducing various offers.

Telecom industry analysts said margins of the telecom players will get thinner as competition rises. “It has already become difficult, and no one is sure of how things pan out as Reliance Jio gets aggressive,” a senior official with a leading telecom company said, requesting anonymity.