Tata Tele unveils new scheme

Tata Teleservices' forthcoming schemes are likely to target potential mobile phone customers who prefer prepaid service because of the relatively better returns.

Last week, Tata Teleservices launched a new scheme called 'Non Stop Mobile' that aims at roping in the first time mobile user.

M A Madhusudan, COO of Tata Teleservices in the Tamil Nadu and Kerala circles, said that prepaid services ensured better returns for the company.

Even though postpaid services have a higher average revenue per user (ARPU), the prepaid service has given the company better returns because the servicing costs are low.

About 70 per cent of the company's business in the Tamil Nadu circle comes from prepaid service. In the circle, the company has a subscriber base of 2 lakh, about 10 per cent of its national subscriber base.

Tata Tele is set to invest Rs 375 crore in 2005-06 to expand its telecom services in Tamil Nadu which would put its cumulative investment in the state at Rs 1,475 crore.