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Tata lowers the CDMA pulse bar

BS Corporate Bureau in Mumbai | August 07, 2003 11:00 IST

Tata Teleservices (Maharashtra), the basic service provider which launched code division multiple access-based Tata Indicom mobile services in Mumbai on Wednesday, has offered lowest pulse rates at 15 seconds.

Y V L Pandit, chief operating officer, TTML said, "We will offer the lowest pulse rates at 15 seconds which have been approved by Telecom Regulatory Authority of India and along with call rates which are amongst the lowest in the country."

Trai earlier this year had turned down rival Reliance Infocomm's package offering CDMA services at 15 second pulse. Reliance did not comment on the issue.

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TTML is offering a 15 second pulse on local calls to landline, to WLL (mobile), intra circle calls to landline or WLL (M), inter circle STD calls to any network type and all ISD calls.

Only local calls and intra-circle calls to GSM are charged at 60 second pulse.

In his presentation comparing TTML tariffs with that of its competitors, Pandit said that considering a fixed calling pattern, Tata Indicom was cheaper by Rs 80 per month with 200 minute local call and 20 minute STD, 72 per cent cheaper with 400 minute local call even though the entry level was higher at Rs 999 compared with Rs 501 entry level offered by other WLL service operator in Mumbai."

Also, compared with GSM service providers, Tata Indicom's limited mobile services are cheaper by six per cent considering a fixed calling pattern and 200 minutes local call, 30 per cent cheaper with 300 minutes local call and 39 per cent cheaper with 400 minutes of local call.

Pandit said the tariff rate is lowest per minute and is anywhere between 45 and 70 paise.

J J Irani, chairman of Tata Teleservices said, "We don't want to emphasis that we are cheapest but we are the best and we are also the most economical. We are not into a competition to reduce prices but we are offering superior quality network and services."

TTML has invested Rs 350 crore (Rs 3.50 billion) in commissioning the first phase of the launch of Tata Indicom Mobile services in Maharashtra. The company will further invest Rs 1,000 crore (Rs 10 billion) over a period of 3-4 years in the wireline and wireless infrastructure.

S Ramakrishnan, managing director of Tata Teleservices (Maharashtra) said Tata Teleservices Ltd was raising more debt for the new circles.

"We are raising close to Rs 2,000 crore (Rs 20 billion) over a period of five years," he said.

However, he pointed out that the debt:equity ratio will be maintained at 1:1.

TTML is offering limited mobility services at an upfront payment of Rs 999 and the services will be available at 14 franchisee showrooms with retail selling points expected to touch 1,500 across the city.

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