Reliance Jio effect: Idea offers 5GB daily data, unlimited calls at Rs 998

New Delhi: In a bid to counter Reliance Jio's 799 plan, Idea Cellular has come up with a new prepaid plan.

The telecom operator is giving 5GB 4G/2G daily data, unlimited local and national calls and 100 free SMS per day with 28 days validity at Rs 998 to its prepaid users. Subscribers can also avail up to Rs 3,300 cashback on recharges from the Idea website or app as part of Idea's Magic offer.

There are a few riders in the pack –for example unlimted calls are capped at 100 unique numbers per week. Users will get only 250 free minutes per day, 1,000 minutes per week. After exhausting the limit customers will be charged 1 paisa per second for local and STD calls.

The pack is however available only in select circles.  

Check out the Reliance Jio plan at Rs 799

Large operators have been flagging pressure on revenue and profitability, blaming the rock-bottom data tariffs and free offerings of newcomer Reliance Jio for deteriorating financial health of the sector.

While on one hand Reliance Jio accuses incumbent operators of milking the sector using borrowed money, older players like Airtel, Vodafone and Idea blame free voice and data offering by the Mukesh Ambani firm for bleeding the sector.

Notably, last month, Trai said it will impose financial disincentive of up to Rs 50 lakh per circle on operators if their service rates are found to be predatory in nature.

A tariff will be considered predatory if in a relevant market, a telecom operator with over 30 percent market share offers services at a price which is below the average variable cost, with a view to reducing competition or eliminating the competitors in the relevant market.