Why the price of mobile data in India is suddenly plummeting

The price of mobile data in India is plummeting. Some of India’s leading telecom operators—Bharti Airtel, Vodafone India, and Idea Cellular—recently slashed their mobile data rates by as much as 90%. Under the new schemes, customers can access the internet over 2G connections for as low as 1 paisa (less than 1 US cent) per 10 kilobytes.

What’s driving the dramatic price war?

1. A massive market for smartphones
2. Mobile data isn’t yet heavily used
3. A new competitor looms
4. Phones are getting cheaper, too