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RCom halves GSM rates

BS Reporter in Mumbai | February 12, 2009 10:10 IST
Last Updated: February 12, 2009 13:31 IST


Upping the ante in telecom price war, Reliance Communications [Get Quote] has reduced its GSM tariffs by 50 per cent by doubling talktime period and extending validity for lifetime.

However, the move has failed to amuse the existing GSM players as they have opted for a 'wait and watch' policy.

The company has enhanced validity and talk-time of its already launched GSM tariff plans. Under the new offer, subscribers would be able to make local calls at 50 paise per minute (Re 1 earlier) and STD calls at 75 paise per minute (Rs 1.50 earlier). It had also extended validity for lifetime (licence period of the company).

Earlier, Reliance Mobile GSM had offered limited validity of either 3 months or 6 months, which has now been enhanced to lifetime validity, by default.

Thus, all new Reliance Mobile GSM connections will come with lifetime validity at a nominal charge, RCom said.

Under the offer, the company will also provide a daily talk-time credit of Rs 4 for 90 days, thus a total talk-time of Rs 360 (6 times that of the recharge value).

The additional talk-time can also be used to make local calls and send SMS to any network, it said.

The double talk-time offer is available on every recharge till March 31 for both existing and new customers. Moreover, all the company's new connections will come with lifetime validity at a nominal charge.

Its existing GSM customers can avail of the scheme on every recharge with a special tariff voucher of Rs 26.

RCom has also introduced an SMS pack of Rs 32 targeting the youth, which will offers 500 local SMSes free-of-cost.

"We have received tremendous customer response for our GSM service since its launch in January. By offering lifetime validity, lucrative benefits and other gamut of services, we are fulfilling customers' expectation of a delightful communication experience. We will continue to explore new opportunities to provide our Reliance

Mobile customers with unparalleled network quality, customised tariff plans, constant innovations and best in class services," RCom Regional Head (West) Dinesh Gulati said.

However, the existing operators are playing a waiting game. When contacted, an Idea Cellular [Get Quote] spokesperson said, "We will only launch schemes depending on the market demand, and if there is a need to reduce tariffs, we will take a call on it."

A Vodafone-Essar official also mirrored the sentiment, while analysts were skeptical whether other companies will follow suit.


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