RCom cuts local call rates to 50p

Upping the ante in the lifetime validity category, Reliance Communications (RCom) has slashed validity rates to Rs 199 and that of local calls to 50 paise per call under its pre-paid scheme. The new scheme is being launched across the country on Tuesday.

At present, RCom has two lifetime validity schemes "" of Rs 999 and Rs 495 "" and this represents slashing of prices by 70 per cent and 60 per cent, respectively.

The slash in outgoing calls amount to around 50 per cent, compared with the present charges of outgoing calls that are pegged at around Re 1 per minute.

Analysts, tracking the sector, termed this "predatory" and said that other operators are likely to follow suit.

"This is another big offer from Reliance Communications. Sensing the need of the industry, we have slashed the prices further. This would make mobile telephony more affordable in the country and result in its increased penetration, especially in the rural segment," RCom President (Personal Business) S P Shukla told Business Standard in an interview.

The schemes are also independent of handsets, and consumers can use it with their existing schemes, he added.

Under the new scheme, incoming is free, while local calls are pegged at around Rs 99 per minute (which is the industry practice). However, the company is providing options "to customise" the schemes, under which calls are billed at 49 paise for 60 seconds.