"We have lowered the price barrier for first time data customers with as much as 33 per cent reduction in dongle prices. We have also rolled out a range of monthly data plans to suit the needs of customers across categories," MTS India Chief Marketing and Brand Officer Leonid Musatov said in a statement.
The company said its new post-paid customers now need to pay Rs 999 to get an MBlaze Ultra Wi-Fi dongle which was earlier available for Rs 1,499.
MTS said its dongle is now priced at almost half the rate of is competitors. The statement mentioned that services will be offered at broadband speed of up to 9.8 megabit per second.
The company has reduced rates of its MBlaze Ultra Wi-fi dongle loaded with 10 GB mobile broadband to Rs 1,749 from Rs 2,299 for new customers.
MTS has also announced a new schemes under its festive offers which charges mobile broadband usage at less price as compared to its previous offerings.
For pre-paid customers, it announced new scheme to offer 5 GB mobile broadband usage for Rs 499, 7 GB for Rs 699 and continued its offer of 20 GB for Rs 999.
Earlier, the company had a scheme under which it offered 4 GB for Rs 599 and 8 GB for Rs 798.
For post-paid customers, MTS has reduced monthly price of 10 GB mobile broadband usage capacity to Rs 550 from Rs 875 and launched a new scheme which offers 14 GB mobile broadband.
The company is offering 40GB data to its post paid customers for Rs 999.
"This is a festive offer but will remain in existence for at least a quarter. After which we will again evaluate it," Musatov said.
A cut-throat price war had broken out in call rates in 2009-10, when mobile internet was less prevalent, between telecom operators which were given licences in 2008 and older players. The tariff war had pushed call rates to as low as half a paisa per second.
In the present case, new player MTS is also giving its customers option to carry forward unused mobile broadband capacity to the next few months against recharge of a minimum amount.
It may be noted that leading telecom operators Vodafone and Idea Cellular operators had increased their rack rate of mobile internet service by up to 100 per cent and standalone packs by about 12 per cent in June-September.