Reliance Infocomm on Tuesday fired another salvo in the ongoing telecom battle with its Monsoon Hangama offer of a mobile phone on upfront payment of Rs 501, against the current entry cost of Rs 3,300 for limited mobility services.

The limited period offer opens on Wednesday, and will be available till July 31, 2003.

The deal is sweeter for Reliance's 3 million shareholders, who will not only get the Reliance IndiaMobile connection free but also a credit of Rs 349 in their first bill.

Shareholders can also avail of the offer in "conjunction with the Khazana club offer, wherein they are eligible for a discount of Rs 850 on upfront payment for becoming a mobile subscriber," Reliance Infocomm said in a media release.

Reliance Infocomm has been drawing customers since it announced its Dhirubhai Ambani Pioneer Offer. It acquired 1.5 million customers within two months of the commercial launch of its services on May 1, 2003.

A statement from Reliance Infocomm said, "This limited period offer gives consumers a unique opportunity to own a mobile phone with both, a low entry cost and a low monthly spend."

Rentals have, however, been increased by Rs 200 across the board. Yet the release says a customer can restrict his monthly outgo to Rs 449 per month, inclusive of the Rs 200 paid as club membership and privilege charges. The customer, of course, will also get Rs 100 worth of free talktime per month, including SMS.

Reliance Infocomm has been offering sops to rope in subscribers at a time when Tata Teleservices is ready to launch its limited mobility services in the rest of Maharashtra some time this month and in Mumbai by early August.

While Tata Teleservices will operate in six circles, Reliance is commercially available in around 200 cities. It expects to expand its services in 693 towns and cities across the country.

The company has 250 web worlds and retail stores to support its services.