Reliance Jio Makes Everyone A Price Warrior; Airtel Slashes Data Rates After Voda, Idea

The forthcoming launch of Reliance Jio mobile services, Mukesh Ambani’s biggest bet ever, has sent data rates crashing in the market. As a late entrant in the super-competitive world of telecom where there are already more than one billion mobile connections for a population of 1.25 billion, Reliance is widely expected to drop both voice and data prices over current levels.

Hence the rush by entrenched competitors to cut rates. One GB of mobile data, which earlier cost Airtel prepaid users Rs 259, will now cost only Rs 51.

Jio is currently claiming to be testing test its network. In this run, it is giving away SIMs free of cost with unlimited mobile internet usage and three months of free calling.

Earlier in July, Vodafone and Idea had slashed their mobile data rates, evidently in a bid to counter the launch of Reliance Jio. It is believed that once launched, Reliance Jio will offer high-speed mobile data at low costs and may also throw in free voice calls.

Some industry experts fear that intense rivalry may shift the focus to price war instead of innovation and investment. Qualcomm Executive Chairman Paul Jacobs fears so, according to this report in the Economic Times. However, given that reduced rates are likely to drawn more people to the telecom market, investment and innovation are inevitable in the long run. Telcos will have to innovate to maintain and serve the increased customer base and investment would be an integral part of this process.