Bharti Airtel slashes data usage rates by 90% in Punjab, Haryana - Angel Broking

Bharti Airtel yesterday announced that the company has slashed data usage charges by 90% for pre-paid subscribers in Punjab and Haryana, a day after Vodafone lowered data charges by 80% for its pre-paid and post-paid customers in three circles. Bharti Airtel said that the volume based charges on its recharge vouchers for 2G data usage of three denominations have been reduced to 1 paisa per 10 KB from 10 paisa per 10 KB. The recharge vouchers of Rs.22, Rs.25 and Rs.125 carry a free download limit of 125 MB for five days, 150 MB for seven days and 1 GB for 28 days. After the free download, the customers were presently charged at 10 paisa per 10 KB which have been reduced to 1 paisa per 10 KB with immediate effect. Also, the validity of the Rs.22 and Rs.25 recharge vouchers has been increased to 30 days and that of Rs.125 recharge vouchers increased to 90 days.

Vodafone had yesterday reduced the price from 10 paisa per 10 KB to 2 paisa per 10KB for Karnataka, UP West and Madhya Pradesh and Chhattisgarh circles for both pre-paid and post-paid customers using the 2G network. We expect other players in the industry to follow Bharti Airtel's and Vodafone's move to make internet access affordable for customers who use mobile internet in a limited way and inturn increase the share of data subscribers in the overall subscriber base.

We maintain our Buy rating on Bharti Airtel with a target price of Rs.328.

Source : Equity Bulls

Keywords