Price war expected in 4G services, Tikona Digital to offer 4G services at 2-5 paisa per MB

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Dec 14, 2012: Companies planning to roll out their 4G services are thinking of very aggressive pricing which might lead to another round of price war in the mobile services market. 4G services are expected to be priced less than 2G and 3G services. 4G operators like Mumai based Tikona Digital and Videocon which have won licence for high speed internet service will be launching 4G services in 2013. Airtel is the only company to have started offering 4G services in some cities at 13-15 paise per MB.

According to reports, Tikona Digital will be launching 4G services in Gujarat, Rajasthan, Himachal Pradesh and Uttar Pradesh at 2 paise to 5 paise per MB and if it happens then it would be one of the most aggressive pricing witnessed in the near past. 4G services are considered the next big thing with 10 times faster internet download speed compared to 3G and this pricing might spoil the party of 3G operators.
High-speed data services are considered the next big thing for the India’s beleaguered mobile phone companies that are battling stagnation in voice revenues as well as fighting poor returns on their 3G investments. Economically priced 4G offerings may end up spoiling the business case of 3G operators. At present, most 3G operators offer one MB download for about 30 paise.

Consumers will be able to download data and surf the internet on the 4G platform at a much faster speeds than what 3G operators can offer. 4G services offer six to 10 time’s faster internet download speeds when compared to 3G.