Top Story

e4m_logo.png

Home >> Digital >> Article

GSM majors to counter RIM pre-paid offensive

16-August-2004
Font Size   16
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

Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

Mumbai was chosen in keeping with the company's focus on featuring their proprietary technologies over undiscovered markets like South Asia

The campaign, featuring brand ambassador Farhan Akhtar, exhorts consumers to showcase their achievements through the walls of their homes.

We list a few important stories that you may have missed in the week gone by