After four years, Reliance Communications (RCom), India's largest mobile service provider offering Code Division Multiple Access (CDMA) technology, is set to start another price war in the Indian telecom space by cutting Global System for Mobile (GSM) call rates 30 per cent when the service is launched. The company recently received permission to launch GSM services within its existing licence and is awaiting allocation of spectrum.
ALL-INDIA AVERAGE TARIFF*
Post-paid Pre-paid Blended
GSM Rs 1.02 Rs 1.14 Rs 1.11
CDMA 93 paise 82 paise 85 paise
* Figures as on quarter ended June 30, 2007
RCom is planning to cash in on the difference in the average tariff between GSM and CDMA operators. On average, GSM services are 33 per cent higher than CDMA operations. With RCom intending to offer services on dual-chip phones, the company thinks it is necessary to have uniform prices. A difference in prices will result in different billing and other issues. Moreover, the company expects more subscribers to move from other GSM networks to RCom's network if prices are comparatively low.
No comments:
Post a Comment