Mobile data offers will go as low as Rs 2.7 per GB now that Reliance Jio has announced an additional 500 MB data for its users as part of Republic day offer, says a Bank of America-Merill Lynch Report.

As per the report, analysts' calculations reveal that per GB data will cost Rs 2.7 under the Jio's Rs 448 and Rs 498 plans, under which the company will offer 2GB and 4GB data per day. Internet speed will reduce after the limit is consumed. The plans have valid for 84 and 91 days, respectively.

In the beginning of the same month, Jio made a "Happy New Year" offer that reduced the rates to Rs 4 per GB. "This is the second "implied tariff" cut by Jio this month and signals Jio's intention to continue to focus on sub additions until it reaches a particular scale. Jio also introduced a new plan for Rs 98 that provides access to 2G data per month this looks more like a feature phone offering," the report said.

Its closest rival Bharti Airtel data cost per GB dropped to Rs 4 under its new schemes.

The tariff of Rs 2.7 per GB data is about 99% lower compared to Rs 249-259 per GB charged by established big operators till August 2016, which is before the commercial launch of Jio services.

Inputs From PTI