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logo-airtelTaking cue from Aircel Cellular, which launched and promoted the Pocket Internet as a differentiator, Bharti Airtel has launched two mobile internet recharge vouchers for its Prepaid users in Delhi & NCR. The recharge vouchers are priced at Rs. 95 for 100 MB, and Rs. 26 per 15MB. However, this doesn’t even come close to Aircel’s offer of Rs. 14 for unlimited browsing for 3 days, and Rs. 98 for unlimited browsing for 30 days.

Airtel does have a “Zero Rental GPRS” plan, for which it charges Rs. 0.30 for 50kb of download for GPRS. The cost of the Prepaid Internet vouchers work out to Rs. 0.046 for 50 kB in case of Rs. 95 for 100 MB, and Rs. 0.0846 for 50 kb plan – in both cases, substantially cheaper than the existing rates. It is also cheaper than Airtel’s Daily Download Internet plans of Rs. 10 for 3MB of data, or Rs. 20 for 8MB of data (20p per 50kb).

Issues With E-Vouchers and E-Recharge

Airtel has chosen to go with an e-voucher option – the Internet specific recharge will be done by the retailer electronically, and there won’t be scratch cards. This helps Airtel save on printing and distribution costs for Internet specific vouchers, but they will face an issue as well. Retailers prefer printed recharge vouchers because it means less involvement from them, and less time that the consumer spends standing outside his limited retail space, awaiting a recharge confirmation message. Given the margins that retailers operate on (Rs. 0.05 on a Rs. 10 recharge, last time I checked), this isn’t a good deal for them. Consumers also tend to regulate their mobile usage by buying multiple vouchers, and using them when needed. Thus, a scratch-card voucher works better for both the consumers and the retailers than an e-voucher.

Why are the vouchers cheaper than regular GPRS? Why Is GPRS more expensive than broadband?

It’s a little strange that vouchers are cheaper than the Zero Rental GPRS option that Airtel offers to consumers. My guess is that this is because with the recharge, the consumer does not use up voice minutes on the Internet, instead, is topping up her prepaid account specifically for the Internet. So this is a bonus. What’s your take on the pricing?

However, compared to regular Internet charges, GRPRS is still substantially more expensive, probably because the data usage in case of the mobile Internet is lower than the Internet, and there is price you have to pay for utilization of scarce spectrum, as well as the freedom that mobility allows. I wonder if that will change with 3G…doesn’t seem to be the case with the way MTNL and BSNL have priced their 3G data offerings.

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13 Comments until now.

TUSHAR SHARMA + September 16th, 2009 (#):

@ Nikhil can u please explain in bit detail what you exactly mean by (My guess is that this is because with the recharge, the consumer does not use up voice minutes on the Internet, instead, is topping up her prepaid account specifically for the Internet. )

Nikhil Pahwa + September 16th, 2009 (#):

What I meant to say is that money (prepaid balance) that the consumer is likely to use up for voice, is not used up in browsing. Some consumers might show a propensity to talk less and conserve remaining balance if the money it gets used for VAS. The Internet browsing card is an added expenditure, meant only for the Internet usage

Sony Joy + September 16th, 2009 (#):

Hey, Nikhil… I guess Airtel Zero Rental or rather Airtel Live rates are 30p for 20kb and not for 50kb.

Nikhil Pahwa + September 16th, 2009 (#):

Sony…I checked the rates for prepaid, Delhi, on Airtels website before doing the post. 30p for 50kb is what the rate is, according to their website. Screencap: http://twitpic.com/hy4c8/full

@Elizabeth_Chen + September 16th, 2009 (#):

Nikhil, its fantastic to have your perspective on each article, that gives the readers a clearer understanding!

TUSHAR SHARMA + September 17th, 2009 (#):

HI NIkhil … i am still waiting to hear from you ……!!!!!

Nikhil Pahwa + September 17th, 2009 (#):

Tushar: I’ve already commented.

TUSHAR SHARMA + September 17th, 2009 (#):

@ Nikhil….. Hey then do check might be some "admin rights" prob or so as …. coz on viewing the post i can see (7 comments) and when i click on comments they open up as 6.

Uma sen + October 5th, 2009 (#):

I think all the gprs services are very poor data exchange. Reliance or tata netconnect is the best. Because i use that all kind of that, now i simply select this.

Sriraj + October 14th, 2009 (#):

The Data charges (in Airtel) for surfing the Internet using Airtel live APN is 30ps/20kb. While Airtel Mobile Office APN charges you 30ps/50kb.
Any which way, Aircel clearly is a better player when it comes to browsing on a mobile and their speeds are good too. Recently Docomo followed the steps of Aircel and introduced 100MB browsing for Rs.98 but its network needs to be way better if it has to stay in the competition.

Wolfgang muller + October 29th, 2009 (#):

Wherever your travels take you, all you need is a phone line to access the Internet. If there's no local access number available, most plans also come with toll-free access numbers that are charged at a higher per-minute rate.

World Travel + November 27th, 2009 (#):

Hey Aircel plan looks good 98rupee for unlimited

Vikas + December 14th, 2009 (#):

Hey How Do I recharge the Rs:26 Internet e-Recharge from the shop.As most of the shops are not aware of it and even i am prity confused to get the internet voucher recharges with Rs:26.
Can U tell me for how long is this valid and how long is The Rs:95 internet card valid.