Reliance telecom tariffs cut by 60%

Pre-paid customers to pay 0.99/min as against current rate of 2.49/min.

At a time when global system for mobile (GSM) service companies are increasing tariffs, Reliance Infocomm is doing just the opposite. It has slashed tariffs for its prepaid customers by almost 60 per cent for local calls on Reliance India Mobile (RIM), and by 28.11 per cent for calls made to other mobile and landline customers.

The company is also introducing new data-enabled and multimedia handsets from the LG stable priced at Rs 2,499 (non-colour) and Rs 4,999 (colour).

The new tariffs plan will be effective from the midnight of August 15/16, as a part of Reliance Infocomm's "Independence day special" offering.

The new tariffs will give customers almost double the number of talktime minutes compared to the what the rest of the mobile telephone service industry offers, says S P Shukla, president, wireless products and services, Reliance Infocomm.

For a pre-paid voucher of Rs 325, the blended talktime now will be 82-83 minutes versus the 53 minutes enjoyed by GSM service companies' pre-paid subscribers.

The CDMA company which has over 8 million customers has also done away with tariffs related to distance slabs by simplifying rates. It has also expanded the definition of "friends and family" to include all RIM as well as Reliance IndiaPhone users (fixed wireless phone) users.

For a RIM pre-paid customer, local calls will be charged at the rate of Rs 0.99 per minute, down from the existing Rs 2.49 per minute. To other mobiles and landlines, the customer will have to shell out Rs 1.79 per minute, 28.11 per cent lower than its exisiting tariff of Rs 2.49 per minute.

For inter-circle calls, the tariffs have been lowered by 40 per cent , from Rs 2.99 per minute to Rs 1.79 per minute. GSM operators charge Rs 4.99 a minute for inter-circle calls.

While GSM operators increased roaming rentals and tariffs from August 10, Reliance Infocomm will charge at home tariff for outgoing whereas incoming calls will be charged at RS 1.79 per minute, less than half of what the GSM subscriber pays.

The rate for voice mail retrieval will be reduced to home tariff rates of Rs 0.99 per minute.

Reliance pre-paid, was launched four months ago, today accounts for 35 per cent (2.8 million ) of the company's 8 million subscribers. Most of these are converts from Reliance's post-paid scheme.

The company is offering post-paid customers the option to convert to pre-paid till August 31, 2004. Kamal Nanavaty of Reliance Infocomm said that "Reliance will soon come out with an attractive offer for its post-paid customers".

Meanwhile, the Reliance group has now working out strategy to iron out the glitches in Reliance Infocomm's billing. Reliance Infocomm is designing "a new bill" format by drawing on expertise from all over the globe. It is expected to launch the new simplified bill in the near future.