Triggering a price war in the mobile internet segment, telecom operator MTS India on Monday launched new schemes with a price reduction of about 33% in its high-speed service offerings.
"We have lowered the price barrier for first time data customers with as much as 33% reduction in dongle prices. We have also rolled out a range of monthly data plans to suit the needs of customers across categories," MTS India chief marketing and brand officer Leonid Musatov said in a statement.
The company said its new post-paid customers now need to pay Rs 999 to get an MBlaze Ultra Wi-Fi dongle which was earlier available for Rs 1,499.
MTS said its dongle is now priced at almost half of what is offered by competitors. The statement mentioned that services will be offered at broadband speed of up to 9.8 megabit per second.
The company has reduced rates of its MBlaze Ultra Wi-fi dongle loaded with 10 GB mobile broadband to Rs 1,749 from Rs 2,299 for new customers.
MTS gives its customer option to carry forward unused mobile broadband capacity to the next month against recharge of a minimum amount.
The company also announced new schemes under its festive offers which charges mobile broadband usage at less price as compared to its previous offerings.
For pre-paid customers, it announced new scheme to offer 5 GB mobile broadband usage for Rs 499, 7 GB for Rs 699 and continued its offer of 20 GB for Rs 999.
Earlier, the company had a scheme under which it offered 4 GB for Rs 599 and 8 GB for Rs 798.
For post-paid customers, MTS has reduced monthly price of 10 GB mobile broadband usage capacity to Rs 550 from Rs 875 and launched a new scheme which offers 14 GB mobile broadband.
However, the company has halved the benefit under Rs 999 scheme for post-paid customers. Under the plan, post-paid customers will get only 20 GB usage limit as compared to 40 GB earlier.
"This is a festive offer but will remain in existence for at least a quarter. After which we will again evaluate it," Musatov said.
The move to reduce mobile internet rates by MTS is contrary to the trend of rise in prices by other telecom operators. In June-September period, leading incumbent operators had increased their mobile internet rates.
The trend to raise mobile services rates picked up and became more frequent from 2012 onwards after Supreme Court cancelled 122 telecom licences and as a result, there were few mobile operators left in the market that had valid permits.
MTS was one of the company which lost licence as a consequence of Supreme Court judgement and the company had to buy spectrum and licence afresh to start services.
The company now operates in Delhi, Rajasthan, Gujarat, Karnataka, Kerala, Tamil Nadu, Kolkata, West Bengal and UP (west) where it has rolled out festive offers.