Reliance reduces 3G prices
Reliance has cut its 3G rates and brought them to levels close to 2G pricing and has announced that 2G customers will be automatically moved to 3G services if users’ handsets support 3G.
The price cuts have been huge – as much as 50 per cent – bringing the new rates at par with 2G pricing for both postpaid as well as prepaid users. Reliance aims to capture over 40 per cent of the 3G smartphone and tablet market with this move.
With the rate cuts in place, 1GB plan on Reliance will cost ₹123, 2GB will cost ₹246 and 4GB will cost ₹492. The rate cuts are across the board and new customers joining Reliance through portability schemes will also be provided with the new pricing and on top of that will be able to avail 1 GB of 3G data free per month for the first two months. The company is already offering pay as you go users with 1 paisa per 10 KB of 3G data rates – half of what its rivals are charging.
Overall perception about Reliance services isn’t positive and couple that with poor 3G network presence as compared to its rivals, the price cuts are not going to start a price war. Reliance has just 11,000 3G BTS (Base Transreceiver station) as compared to a whopping 25,000 of Bharti Airtel and Idea’s 17,000. The more the BTS, the better the coverage is and taking that into the equation, customers may not be overly motivated to jump ship and join Reliance.
But, one thing that does make a difference is the infrastructure that Reliance possesses. Reliance offers downloads speeds that are three times as provided by other telecom operators – 21mbps as against 7.2mbps.