Goodies for mobile users signal new market war

New Delhi: Mobile phone users have a lot to cheer about this festive season. It's raining freebies and discounts on phone buys as well as internet data charges. And with the Diwali weekend coming up, the pitch may get stronger. 

    One of the most attractive offers comes from Anil Ambani-owned RCom. The operator is offering the latest Apple iPhones, 5C and 5S, at never-heard-before prices. RCom will give you the 16 GB versions of the devices without any down payment. The 5C will cost you Rs 2,500 per month for two years and the 5S Rs 2,850. 
    This payment comes bundled with free unlimited calls and SMSes (local and STD across network), apart from zero cost for 3G data usage. There is also no charge on national roaming. 
    There is a down payment though for higher versions of the two devices, 32 GB and 64 GB. 
    Sony, which is also expanding in the Indian mobile phone market, is offering free limited-period 3G data packs as well as other accessories along with its premium Xperia Z range of phones. 
After cut, petrol to cost 78.04 in city S tate-run fuel retailers cut the price of petrol by Rs 1.45 per litre on Thursday. The fuel will now cost Rs 78.04 a litre in the city. Meanwhile, diesel prices have been hiked and will cost Rs 60.08 in Mumbai. P 10 Real war's on mobile data front 
New Delhi: Jaideep Ghosh, who tracks the telecom sector at KPMG India, said operators are expected to go aggressive on iPhone schemes as the customers of the brand are high users of data and calls. "If the offer is good, iPhone fans will lap it up. Moreover, the operator will stand to benefit as a bundled scheme ensures that you are locked up with the telco for a long period." 
    Contacted for confirmation, RCom refused to comment on the schemes, saying it'll be announced on Friday. Sources said RCom, which does not enjoy high brand equity among premium customers, wants to ride on the scheme to poach topend customers. 
    And as the competitive heat spreads on to the devices market, the real war appears to be on the data tariffs front. While call charges—that are the lowest in the world—have been sobering for sometime, data is witnessing an intense battle between operators who see internet as the next growth driver for revenues, as well as profits. 
    The trend has been strong for sometime and went up to a new high when in July RCom cut the price of its 3G data tariffs below that charged for 2G. 3G had failedto be a high flier in the market, but with lower charges, companies expect its acceptance to go up. 
    RCom's scheme spurred fresh competition in the market and there has been a renewed thrust to acquire data customers and push up internet usage. Airtel, the country's biggest phone operator, has been aiming at first-time internet phone users with the expansion of its 'Re 1 entertainment store' plan. 
    And on Thursday, Vodafone—its closest competitor-—slashed its 'pay as you go' 2G tariffs by as much as 80%, bringing them at par with 3G prices. Vodafone termed the scheme as 'Diwali bonanza' and said under it, mobile internet charges will remain the same as home rates even on roaming. The rate has been cut from 10paisa for 10KB of internet usage to 2paisa per 10KB usage. "This reduction in mobile internet charges is an important step in our strategy to drive mobile internet and we are confident that this move will facilitate in faster adoption and better usage," said Vivek Mathur, chief commercial officer at Vodafone India. 
    KPMG's Ghosh said lower data prices and attractive schemes help companies attract new users to the data fold. "And apart from getting new data subscribers, it also helps drive up the usage of data amongst users. The higher usage compensates for the lower entry prices that they offer." 
    Industry officials said that Vodafone's aggressive pitch will have to be matched up by other operators who will have to follow suit soon. "Everybody will have to match it. End of the day, we have to be competitive," an official with a leading operator said, requesting anonymity.