Reliance Jio ups data benefits, tariff war continues

NEW DELHI: Reliance Jio unleashed a fresh wave of tariff war as it boosted data offerings on its entry pre-paid plan by over six times, the move coming at a time when competitors such as Airtel have accused the company of engaging in back-breaking pricing.

According to a new tariff plan filed by the company, Jio has increased the free data usage limit from 300MB to 2GB that comes with its Rs 149 plan. Similarly, in the Rs 499 plan, it has increased the benefit from 4GB to 56 GB. The enhanced data plans are, however, for those consumers who agree to subscribe to the company's 'Prime' membership scheme, which costs Rs 99 annually.

Jio is understood to have filed new plans with regulator Trai and these will come into force from April 1, when its services go pay. Officials at Bharti Airtel, the country's largest mobile company and Jio's biggest rival, said they were not aware of any immediate plans to counter Jio's move.

Airtel's Rs 145 pre-paid plan currently offers data benefits of 300MB and free calling, but within the company's own subscriber base. Jio, on the other hand, offers unlimited free voice calling across networks and while roaming.

Airtel had on Monday announced plans to remove roaming charges from April 1 as it sought to counter Jio's freebies and high-data plans. Telecom industry analysts expect the tariff war to continue in the mobile segment, and other operators are also expected to join war including Idea Cellular and Vodafone.

Jio's aggressive posturing has impacted financials of telecom operators badly , and Airtel had reported an over 50% decline in its third quarter profit. Vodafone and Idea Cellular are working out a merger to insulate themselves from the cut-throat competition and stay profitable.