Aircel plans to get 50 per cent of revenues from 2G and 3G data services by 2015.

To achieve this, Aircel has launched an Internet scheme that costs less than Re 1 per day. This plan, called Pocket Internet 24 (PI-24), is for prepaid users. It can be used for a month and provides 100MB free of downloads. The company had earlier launched 3G schemes that charged users Rs 8 for unlimited Internet usage in a day but according to Kadhiravan K., business head for Karnataka circle, the first-time user wants to use 3G for a longer duration as compared to the past, when users preferred smaller 3G user packs.

Aircel, along with others such as market leader Airtel, is trying to increase the base of data usage, more so 3G usage, at a time when they are struggling with an average revenue generated per user of Rs 100-150. Airtel India has reported 43.49 million mobile Internet connections, with 1.2 million 3G customers. Idea has about 4.5 million Internet users. Currently, 26 per cent of Aircel users access Internet on mobile phones.

First-time users

With this launch the company is targeting first-time Internet users on mobile phones. India has around 120 million Internet users but the majority still access it from desktops or laptops. “The majority in India has still not used any form of Internet and with this, we are hoping that Internet penetration widens across the length and breadth of the country,” said Kadhiravan.

Industry watchers are not convinced about this strategy. The company needs a lot of capital infusion to maintain huge broadband pipes and upgrade networks, and considering its financial situation, it could be tough, said an analyst.

Annual revenues of the Chennai-headquartered mobile operator in 2012 were estimated at $1.1 billion. It has a subscriber base of over 63.35 million as of December 2012 with 62.24 million subscribers actively using their services.

venkatesh.ganesh@thehindu.co.in

Related Topics