Telecom companies launch price war in data services

When Idea Cellular announced it was bringing parity between internet connection charges for data on the advanced 3G and less-advanced 2G technology, industry experts looked up and said this is the migration from price wars in voice to that in data. 

The convergence of pricing of internet access across 3G and 2G is bound to happen. Pack rates for 3G tended to be cheaper than 2G in absolute terms, because consumption at a higher speed is more, said Ambrish Jain, deputy managing director, Idea Cellular. 

Idea only cut headline rates and the packs remain unchanged, as was the case in Vodafone's cut, effected two weeks ago. With this move, whether it is 3G or 2G data, and Idea customer will pay only two paise per 10 kilobytes. 

While rate cuts and lower pricing for slower data speeds in 2G technology have happened, this is the second time a company has equated pricing in 3G and 2G. Since 3G is seen as a premium service, it was expected to yield higher margin for operators, but given its slower-than-expected uptake, operators hope higher consumption will annul the lower price impact.

Source: http://cablequest.org/news/telecom-news/item/3540-telecom-companies-launch-price-war-in-data-services.htmlSource: http://cablequest.org/news/telecom-news/item/3540-telecom-companies-launch-price-war-in-data-services.html