Top Story

e4m_logo.png

Home >> Digital >> Article

GSM majors to counter RIM pre-paid offensive

16-August-2004
Font Size   16
Share
GSM majors to counter RIM pre-paid offensive

The price war in the wireless space has resurfaced. Just when cellular users were informed by service providers that their roaming tariffs would increase, Reliance Infocomm has announced a steep cut (as much as 60 per cent for some calls) in its pre-paid tariffs starting Monday.

The move is likely to change market dynamics as it is the first major price war in the pre-paid segment. Cellular service providers have, however, said that any significant price cut is unlikely.

“What might perhaps happen is that the user may get more value-added services like additional talktime or even free SMS for a limited period,” said a senior official at a cellular company.

Officials at GSM companies are maintaining a wait and watch policy. “We need to study the issue in detail since we have just hiked our roaming tariffs.

This has certainly upset our revenue projections,” one GSM operator said.

He pointed out that any freebie will be difficult to sustain for an indefinite period. Not surprising since the pre-paid segment accounts for about 70 per cent of the overall wireless market and 80 per cent of the incremental subscriber base each month.

But what do Reliance’s new tariffs look like? For an intra-circle call made from one RelianceIndia Mobile (RIM) phone to another, the pre-paid user will now shell out 99 paise per minute compared to Rs 2.49 earlier.

This is lower than what a post-paid entry-level user would normally pay for intra-circle calls.

Tags

In this week's chillout, Gupta shares her weekend routine that not only helps her deal with the high stress of corporate life but also allows her to create some cherished memories. Read on…

NP Singh, CEO of Sony Pictures Networks India, talks of SPN’s growth drivers, pay wall for content, sharing IP and more…

The future of the industry will be 1:1 advertising as traditional channels, like television, become more addressable: Bryan Kennedy, Epsilon

The Founder of Pocket Aces shared his insights on how the consumption of content has evolved and how digital media is growing as the preferred medium of entertainment.

Nikhil Kumar will report to Paritosh Srivastava, COO, Publicis India

On the back of resounding success of its maiden work for Motilal Oswal, Mullen Lintas has introduced a sequel in different settings; again, reinforcing the image of Motilal Oswal as ‘Experts in Equity...

Sony Ten 1 took over Star Sports 1 Hindi to lead the sports genre with three of its properties making it to the Top 5 Programs for BARC Week 46