Airtel offers cell connection for Rs 499

Bharti Cellular has taken the battle to Reliance Infocomm by launching a new scheme that allows consumers to go mobile for an upfront payment of just Rs 499.

Reliance Infocomm had launched its Monsoon Hungama scheme, which offers a WLL limited mobility phone for an upfront payment of Rs 501.

However Bharat Sanchar Nigam Ltd with an upfront payment of only Rs 200 is still the cheapest.

The Bharti scheme, called "Festival of Freedom" comes at time when Reliance's scheme has enabled the company to get more than 3 million subscribers across the country, eating into the cellular market.

In September alone, WLL operators had added 925,000 subscribers as compared with 900,000 by cellular operators.

Of this Bharti has been adding an average of 300,000 subscribers every month while Reliance has been adding close to 500,000 subscribers. BSNL also has been adding close to 300,000 subscribers every month.

Bharti has tied up with Motorola for this scheme. As an additional benefit, Airtel also plans to insure the handset.

The scheme will be launched in 15 cities initially, including Delhi, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Pune.

The scheme will be available for post-paid subscribers. In addition, subscribers will have to pay a security deposit, which will be refunded after 12 months.

Existing Airtel subscribers who want to buy another connection will get a waiver on the security deposit.

With a view to drive forward its mobile strategy, Bharti has announced the restructuring of its mobile division and the formation of a 'mobility board' with six new directors.

The board headed by Manoj Kohli currently the president of Bharti Cellular, will perform tasks ranging from developing business strategies, evaluating financial performance, detailing tariff structures and developing brand management.