Idea slashes 2G data rates by 90% - Angel Broking

Following the footsteps of Vodafone and Bharti Airtel, Idea Cellular yesterday announced that it has reduced 2G data tariff to 2paise per 10 KB from existing 2paise per KB in eight circles - Tamil Nadu & Chennai, Karnataka, Kolkata, West Bengal, Assam, North East, Bihar, and Orissa. Starting from July 1, the new rates will be valid for 90 days. It had 21.57mn data users till March 31, 2013, up from 18.9mn during the previous quarter. Of this, 4.1mn are 3G customers. Data subscribers contribute about 5.7% of Idea Cellular's service revenue annually.

On Tuesday, Vodafone had announced reduction in 2G data rates in three operating circles from 10paise to 2paise for 10KB, followed by Bharti Airtel which cut data tariffs in two circles on Wednesday to 1paise from 10paise per 10 KB. However, all the telcos had increased data prices by about 25% in January. The revised tariff is applicable for all 2G data users who use on pay-as-you-go basis, and also on overage on the regular data packs. We maintain our Neutral view on the stock.

Source : Equity Bulls

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