Vodafone cuts headline Internet charge by 80%

MUMBAI: Vodafone India cut headline rate for Internet surfing on its second generation, or 2G, network services by 80%, the company said in a statement on Tuesday. However, it is unlikely to make a dent on the spending patterns of consumers.

The company offers unlimited data plans on 2G speeds for as little as 199 a month, which are part of service packs. The "pay-as-you-go" charge that is being reduced typically kicks in only when a subscribed data pack runs out. "Keeping that high was more a hassle because of the consumer complaints we would get after bills have run up," said a Vodafone employee, who asked not to be named.

At the earlier price, 150 MB, usually required for basic text-based e-mail service would run up a 1,500 bill. If a consumer left a webpage running, the excess bills run into thousands, which subscribers later contest.

Vodafone lowered this rate to two paise per 10 KB, which translates to 300 for 150 MB. However, that is still significantly higher than industry plans that offer 1GB plans at as low as 100.

Vodafone itself offers unlimited surfing on 2G connectivity, which is substantially slower than 3G, once data plans run out on 3G networks. Three competitors said they will evaluate and possibly consider a similar reduction, as it would not make a significant impact on business. However, they asked not to be named as they had not analysed final numbers and hence were yet to take a call in the subject.