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State-run BSNL, MTNL slash long distance tariff for mobile phones
Wednesday, 08 January 2003, 20:30 IST
NEW DELHI: State-run telecom giants Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) Tuesday joined the tariff war in the mobile phone industry by slashing their domestic mobile-to-mobile long distance call charges.
BSNL would now charge 
4.80 a minute during peak hours for mobile-to-mobile calls and mobile-to-fixed line calls for distances beyond 500 kilometres from 9 earlier, said Prithipal Singh, chairman and managing director of BSNL.
The lowering of charges by BSNL and MTNL comes close on the heels of lowering of tariffs by private mobile phone firms for long distance calls in a bid to retain customers following the launch of cheaper limited radius cellular services.
All the leading private sector mobile service providers cut mobile-to-mobile domestic long-distance charges beyond 50 kilometres to 2.99 a minute from a current peak of 9 a minute on January 2.
Earlier, private firms used to charge their subscribers 2.40 for calls up to a distance of 200 kilometres, 4.80 for a distance up to 500 kilometres and 9 for a distance beyond 500 kilometres.
The latest tariff war in India's fast growing mobile phone industry has been triggered by the launch of wireless telephone operations, or wireless in local loop (WILL) services, by Reliance Infocomm Ltd. at huge discounts.
Reliance Infocomm, 45 percent owned by India's Reliance Industries, has decided to offer a promotional three-year membership at 3,000, a free handset and a monthly payment of 600, which includes 400 minutes of talk time at 40 paise a minute.
Incoming calls, voicemail, text messaging and Internet access would all be free on the Reliance network. Based on its pricing strategy Reliance hopes to grab a 15 to 20 percent share of India's mobile market by the end of 2004.
Currently, Indian cellular companies charge a rupee a minute on an average for an outgoing call. The incoming calls are also charged.
India, one of the fastest growing telecom markets globally, has seen a sharp decline in cellular airtime tariffs and mobile handset prices in the last couple of years as competition soared with the entry of new players.
The Indian cellular market has for the last few years been the most dynamic segment of the telecom industry and amongst the fastest growing.
The country has about 10.5 million mobile phone users now and it is forecast to grow by a compounded 52.5 percent to 30.9 million subscribers through 2005.
Source: IANS
4.80 a minute during peak hours for mobile-to-mobile calls and mobile-to-fixed line calls for distances beyond 500 kilometres from 9 earlier, said Prithipal Singh, chairman and managing director of BSNL.
The lowering of charges by BSNL and MTNL comes close on the heels of lowering of tariffs by private mobile phone firms for long distance calls in a bid to retain customers following the launch of cheaper limited radius cellular services.
All the leading private sector mobile service providers cut mobile-to-mobile domestic long-distance charges beyond 50 kilometres to 2.99 a minute from a current peak of 9 a minute on January 2.
Earlier, private firms used to charge their subscribers 2.40 for calls up to a distance of 200 kilometres, 4.80 for a distance up to 500 kilometres and 9 for a distance beyond 500 kilometres.
The latest tariff war in India's fast growing mobile phone industry has been triggered by the launch of wireless telephone operations, or wireless in local loop (WILL) services, by Reliance Infocomm Ltd. at huge discounts.
Reliance Infocomm, 45 percent owned by India's Reliance Industries, has decided to offer a promotional three-year membership at 3,000, a free handset and a monthly payment of 600, which includes 400 minutes of talk time at 40 paise a minute.
Incoming calls, voicemail, text messaging and Internet access would all be free on the Reliance network. Based on its pricing strategy Reliance hopes to grab a 15 to 20 percent share of India's mobile market by the end of 2004.
Currently, Indian cellular companies charge a rupee a minute on an average for an outgoing call. The incoming calls are also charged.
India, one of the fastest growing telecom markets globally, has seen a sharp decline in cellular airtime tariffs and mobile handset prices in the last couple of years as competition soared with the entry of new players.
The Indian cellular market has for the last few years been the most dynamic segment of the telecom industry and amongst the fastest growing.
The country has about 10.5 million mobile phone users now and it is forecast to grow by a compounded 52.5 percent to 30.9 million subscribers through 2005.
Source: IANS