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Sit back, enjoy mobile rate cuts

The consumers are going to be benefited by mobile service providers' fresh face-off in a price new war, reports Indulal PM.

business Updated: May 23, 2007 00:42 IST
Indulal PM

Mobile service providers have embarked on a fresh face-off in a price new war. And it is you, the consumer, who will benefit. Last week, Bharti, which owns the Airtel brand, slashed its lifetime prepaid service charge to Rs 495 from Rs 999.

Reliance Communications responded by introducing its own lifetime prepaid card for Rs 499. Reliance followed it up by slashing its international call rates. Bharti followed suit on Monday.

On Tuesday, Reliance Communications slashed its national roaming rates by about 70 per cent on certain pre-paid and post-paid plans. It is now offering outgoing roaming calls for as low as 40 paise per minute, while incoming calls will be charged at Re 1 on all tariff plans instead of the Rs 1.75 earlier.

The latest round of rate cuts follows those in February after the Telecom Regulatory Authority of India abolished roaming rentals. The charge for outgoing roaming calls was capped at Rs 1.40 per minute, and for outgoing national long distance calls at Rs 2.40.

An Airtel spokesperson refused to comment on the possibility of Bharti responding with another rate cut, while a Hutch official said: "We will take a decision soon."