Bpl, Hutchison In Second Round Of Cell Price War

BPL Mobile and Hutchison Max today kicked off a second round of tariff war in the Mumbai circle, slashing the entry level airtime rates to Rs 1.49 per minute. The new tariffs will be effective from June 1.

BPL subscribers, opting for the entry level tariff plans, will pay a minimum tariff fee of Rs 299. However, at higher plans with BPL, with a minimum charge of Rs 1,999 per month, all incoming calls are free and outgoing calls are charged Re 1 only.

Hutchison which operates under the Orange brand name quickly reacted by saying it too is shifting to a flat rate of Rs 1.49 per minute in a plan that calls for a minimum commitment of Rs 295 per month.

However, at the minimum commitment level of Rs 1,995 per month, Orange is offering all incoming calls free and outgoing calls at Re 1. The monthly rental for both operators continues at Rs 395 per month. Both operators slashed airtime rates for their respective pre-paid services to Rs 2.25 per minute.

The third mobile operator in Mumbai, Mahanagar Telephone Nigam Ltd is also likely to follow suit, according to sources. Both Hutchison and BPL had slashed their prices in February when the state-run MTNL launched its services in Mumbai and Delhi with reduced rates.

At present, Hutchison and BPL offer mobile service at Rs 2.80 per minute and Rs 1.60 per minute for outgoing and incoming calls, respectively.