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Videocon Telecom cuts data prices, offers data at less than half the price of nearest competitor
TT Correspondent |  |  13 Jul 2016

Videocon Telecom, on Tuesday announced its new Data pack offerings. The telco will now offer more than double the Data benefit to all its prepaid subscribers on standard packs, which effectively will be at less than half the price of its nearest competitor’s offering in Punjab telecom circle.

The new benefits will be applicable on all prepaid data packs of the telco starting at price point of Rs 13 and going up to Rs 251.  On the entry price point of Rs 13 pack, Videocon Telecom will now offer 160 MB data instead of existing 80 MB, which effectively means Rs 8 per 100MB, while the nearest competitor offers 75 MB data on similar price point (effectively Rs 20 per 100MB). Likewise in the most popular mid segment data packs at price point of Rs 58 and 76, Videocon Telecom will now offer 700 MB and 1 GB data from existing 400 MB and 500 MB resp, which effectively is Rs 8.3 and 7.6 per 100MB, while on similar price points, the nearest competitor offers 300 MB and 400 MB data (effectively Rs 18.7 and Rs 21.5 per 100MB).

On the high end data packs, Videocon Telecom will now offer 4GB data and 6GB data on Rs 198 and 251 data pack, which effectively is Rs 4.8 and Rs 4 per 100MB resp, while competition offers 1.5GB and 2.5 GB data on similar price points (effectively Rs 13 and Rs 9.7 per 100MB). Clearly, Videocon Telecom’s new data pack portfolio now offers more than double the benefit than nearest competitor.

“I am sure this disruptive offer will help us further grow our data revenues. Last year we grew our data business by 58% and this year we are looking at surpassing our last year growth. This initiative along with other micromarketing initiatives on data will for sure help us surpass our growth of last year,” said Arvind Bali, CEO Telecom & Handset business at Videocon.

The telco feels that there is still huge market for 2.75G EDGE data to drive internet adoption among the moderate and first time data users and this initiative would help them in improving customer acquisitions, customer retention and unique data users. The telco is forecasting a 20% increase in its unique data users and data consumption growing by approximately 78% in next 6 months.

The growth will be driven by organic subscriber base growth, increase in data penetration, and data consumption per user per month which the telco expects to go up by approximately 20% to reach approximately 350MB. The realization per GB, however will drop substantially owing to this aggressive offer. The telco which currently has approx 11% of its revenue coming from Data is anticipating the contribution to go upto 13% by end of Qtr 2.

    
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13 Jul 2016(IST)  
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