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Cellular players brace for battle 

Shalini Dagar, Kumarkaushalam & Neeraja Kumar  
New Delhi : The cellular price war has started-officially. In a bid to protect their market share from the heavyweight third operators-MTNL and BSNL-the metro mobile operators are re-aligning their tariff plans.* Delhi's leading mobile operator Bharti Cellular says it will "file its new tariff plans with the Telecom Regulatory Authority of India (TRAI) within two days and will rebalance its tariffs within a week."

* Hutchison, the mobile operator in Delhi and Mumbai, says it will make a "competitive offering to the customers, by the time the MTNL starts its services."

* Anticipating BSNL's entry, Command Cellphone, one of Kolkata's two providers of mobile telephony, today slashed its monthly rentals and tariffs on outgoing calls. Spice Telecom, the other operator in Kolkata is also believed to be reviewing tariffs.

Mr Sanjay Kapoor, CEO, Bharti Cellular Limited, said: "We will rebalance our tariff structure by the end of the week. By that time, one would be able to work out the details." He, however, emphasized that, "Cellular services is not a game that can be won by lowering prices - we will make our pricing competitive as well - but by offering superior experience."

Meanwhile, Hutchison Whampoa, which operates the cellular services in Delhi (under the brand name Essar) and Mumbai (under the brand name Orange), will come out with new competitive rates by the time the MTNL enters the market. Says Mr Asim Ghosh, who heads the Hutchison's operations in India: "There is a commitment to providing consumers a competitive offering, keeping in account quality of service."

Mr Ghosh says that this is not a panic reaction. "Already in Mumbai, our effective airtime rate is Rs 2.85 per minute and rental Rs 395. And slashing will continue. While much is being made of MTNL's entry, the fact is it was expected. I am not worried about any legitimate competition from MTNL or the fourth operator. I am more worried about Government allowing mobility to operators governed by a different set of rules."

Meanwhile, Usha Martin Telekom, the company that owns the Command brand, said in a release today that tariffs on incoming calls have been increased to "draw a balance in the overall structure."Cellular prices set to tumble across metros The tariff structure of its pre-paid card, has also been changed. The incoming calls will now be charged at Rs 3 per call received and the outgoing at Rs 6, per call generated.Mr Kapoor said that Bharti Cellular had built tremendous brand equity in the last six years and that MTNL would have to do a catching up game. ``Building roaming relationships across countries, ensuring 24-hours call centres, WAP and SMS services, an efficient distribution network and setting up processes and best practices take years,'' he said.

Meanwhile, the Bharti Cellular executives remain huddled in their boardroom to thrash out strategies to counter the new price warrior MTNL. ``We're firming up our business plans for the next fiscal,'' said Mr Kapoor. ``We'll continue with our existing marketing campaigns, especially the recently launched WAP brand Tango.''.

Mr Kapoor admits that "the entry of the third operator into the market will definitely disturb the break-even point. And it will not be a nominal effect."

Reacting to Mr Sudarshan Banerjee's comments in the media that Essar plans to align its tariffs in Delhi with those in Mumbai, sources in Airtel avered that Mumbai is a very different market. "We will be wiped out if we provide those kind of tariffs. It is a fixed commitment kind of a market. In the current scenario, one does not forsee those kind of tariff plans in the Delhi market."

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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