Nov 19, 2010
Tata DoCoMo unveils aggressive 3G tariffs
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Tata DoCoMo, which became
the first private operator to introduce 3Gservices, today announced an
aggressive tariff plan that targets a substantial conversion of its 2G
customers.Under most of the plans, 3G customers will effectively
pay 0.66-1.1 paisa
a second for a voice call, which is roughly the same
as the 1 paisa a second that Tata's 2G customers currently pay.But they will also get
between 250 MB (enough to watch 3 hours of TV) and 2GB (23 hours of TV)
of data, depending on the package they buy. Price plans start at Rs 500
to a maximum of Rs 2,000 a month for mobile services.
For the
first time, Tata's price plans will not differentiate between pre-paid
and post-paid customers. However, there is one special plan for pre-paid
customers at Rs 350 a month for 500 minutes of talk time (local and
STD) and 150 MB of data.
Existing Tata customers who want to try
out 3G without shifting from 2G completely can add data by forking out
Rs 200 for 200 MB or Rs 500 for 650 MB. "Our pricing is competitive and
we are confident the consumer will see value in the packages we are
offering," said Deepak Gulati, executive president, mobility business
division, Tata Teleservices
| SMART SCHEMES 3G TARIFF FPR MOBILE PHONE USERS | ||
| Price (Rs) | Free monthly minutes | 3G data |
| 350* | 500 | 150 MB |
| 500 | 750 | 250 MB |
| 750 | 1,250 | 500 MB |
| 1,000 | 2,000 | 1 GB |
| 2,000 | 5,000 | 2 GB |
| *only prepaid | ||
Since
the target group for 3G services ranges from mid- to high-end
subscribers, Tata expects to see average revenue per user (Arpu)
increase over time. "For an aggressive user, who downloads one movie
every day, spends on telecom may increase by 10-15 per cent if they
avail of 3G services," Gulati added.
Of course, state-owned BSNL
on the other hand does not have comparable offers as it does not bundle
voice and data services under one tariff. So, for instance, subscribers
have to pay between 49 paise and Rs 1 a minute for a voice call. But for
data usage on 3G, it charges Rs 549 for 1 GB of data.
Gold still a better option
While
this may be half of what Tata charges, if you add the cost of 2,000
minutes of voice that Tata bundles its value comes to around Rs 1,000
(at 50 paise a minute). On BSNL, you have to pay additionally for this
talk time.
BSNL charges also taper off as usage increases. For Rs
999, BSNL offers 10 GB. It also offers unlimited download for Rs 1,359 a
month. But, again, voice is extra.
MTNL, which provides 3G
services in Delhi and Mumbai, charges Rs 450 for 1 GB of data and
reduces prices progressively as usage goes up. For 2 GB, it charges Rs
750 and for 25 GB, Rs 2,500.
Graphic: Indo-US agreements
While
the Tata bundled offer looks attractive, telecom watchers say
subscribers have to make a large upfront commitment for 3G every month.
After
all, with Arpus in the country averaging Rs 140 a month, Tata is asking
customers to commit nearly double to triple that amount for 3G. So, the
promised shift of customers will also be slow, say analysts.
They
also point out that Tata's 3G pricing does not offer any incentive for
higher usage, which is a norm internationally. "It is strategic
behaviour. They are trying to recover costs. But at the same time, it is
a signal to competitors: if you are smart, you will charge the same,"
said Alok Shende, principal analyst, Ascentius Consulting.
"There
need not be competition. 3G is not a mass market. Tata could also be
testing prices and may bring them down if competitors reduce prices,"
Shende added.
Kamlesh Bhatia, principal analyst, Gartner, felt
that taking into consideration the licence fee and spend on the
infrastructure, Tata's pricing seems competitive.
Tata DoCoMo
launched 3G services on Diwali in nine circles: Karnataka, Kerala,
Maharashtra, Gujarat, Rajasthan, Punjab, Haryana,
Madhya-Pradesh-Chhattisgarh and UP (west).
Along with packages
for data usage on mobile handsets, Tata launched five plans for 3G data
services, or dongles, for laptops and other devices with assured speeds
up to 15 GB of data.
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