The Anil Ambani-controlled Reliance Communications is set to reduce mobile charges by a third with the launch of its pan-India GSM (global system for mobile communications) telecom services.
Reliance Communications is planning to minimise the difference in the Rs 1.11 a GSM subscriber pays for every minute of a call he makes with the Rs 0.85 a CDMA (code division multiple access) subscriber shells out for a minute of call time.
This 33 per cent differential is what Reliance Communications plans to leverage as it rolls out its GSM services, for which it got a licence last month. Reliance Communications already has a nationwide CDMA network.
On Thursday, Reliance Communications Chairman Anil Ambani told an analysts’ conference that his company’s GSM expansion would leverage existing infrastructure and the dual network for cheaper tariffs. Analysts feel Reliance Communications could just about do it, because every new customer it adds bolsters its earnings.