The Hindu : Cellular phone companies slash STD charges

Online edition of India's National Newspaper
Friday, Jan 03, 2003

Front Page

Front Page

Cellular phone companies slash STD charges

By Sandeep Dikshit

NEW DELHI JAN. 2 . Cellular phone companies today announced a sharp reduction in the charges for cell-to-cell STD calls. They also promised cuts in other tariff from time to time to "kill competition in instalments''. The decision follows the "threat" to their customer base posed by companies offering "limited mobility" along with free incoming calls and outgoing rate of 40 paise per minute.

The rate for cell-to-cell STD calls from midnight of Thursday will be Rs. 2.99 per minute. The earlier tariff varied from Rs. 2.40 to Rs. 9, based on the distance. This tariff excludes other levies such as airtime charges.

Sunil Mittal, speaking on behalf of the cellular companies, said the idea behind the announcement was to retain the customer base. "We can't sit and see our market share churned by our competitors,'' he said, referring to the aggressive marketing launched by Reliance in preparation of its country-wide launch of "limited mobility" phones with free incoming calls.

BSNL officials, meanwhile, said there would be no change in the STD rates for calls from mobile phones to their landlines, but indicated a matching riposte from their cellular service "CellOne''.

Analysts believe that having generated high expectations, the cellular companies have ridden a tiger they cannot dismount without losing credibility.

They would have to measure up to the promise of making the deal sweeter for the subscriber by reducing the airtime charges, rentals, etc. soon.

At present cell-to-cell STD revenue accounts for less than one-tenth of the total income of the eight cellular companies which are party to today's announcement. Therefore, the step would reduce the monthly tariff of a very narrow slice of cellular phone users. But further excitement could be in store — making the announcement on behalf of the cellular companies, the Union Communications Minister, Pramod Mahajan, who was a surprise invitee, said "he was sure'' the cell companies would be making such announcements every week.

Mr. Mittal promised a similar consumer-friendly anouncement in the coming weeks. But free incoming calls on cellular phones might not materialse, he stated. However, given the record of the cellular companies, they might take this step if cornered.

The eight companies which took the decision utilise Bharti's long distance network and include Airtel, BPL Mobile, Escotel, Hutch, Idea, Orange, RPG Cellular and Spice.

Printer friendly page
Send this article to Friends by E-Mail

Front Page

Stories in this Section

VHP calls Vajpayee a 'pseudo-Hindu'

Hindutva will liberate minorities: BJP

We are not wavering: Thackeray

Cellular phone companies slash STD charges

Presidential nod for Representation of People (amendment) Bill

'Musharraf remark has no significance'

Asma Jehangir denied visa

Petrol, diesel prices hiked

36 fishermen held captive

'Skybus' for Goa

Veerappan: Centre's offer