Reliance Drops Call Rates To 50p/ Min


In response to TATA DoCoMo pay-per-scheme, Reliance Communications has launched a scheme where subscibers will have to pay a flat rate for all calls on its network at 50 paise a minute, including local, STD, incoming and outgoing roaming, and SMSes. The call rates would be applicable for all calls made from its CDMA, GSM or its landline phones. This scheme is slated to replace all its existing plans.
“By launching this scheme, we are simplifying the telecom landscape in the country. There are a lot of tariff plans, around 2,500 at the last count, with different call plans and rates. These are confusing to the subscriber, and hence we have decided to launch one simple plan for all our services,” according to RCom President Mahesh Prasad.
This is no doubt going to impact an already dropping Average Revenue Per User (ARPU), in today’s competitive mobile market, but Reliance is counting on an increase in its subscriber base to help it tide over. Will it work, or will it become the eyeballs game of the Internet bubble in 2000.
Is it mobile number portability which is prompting these steps?

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