Mumbai: With tariff rates having almost bottomed out, telecom companies are thinking out of the box to maintain profitability and tap new market segments.
Keeping this in mind, two leading mobile service providers - Airtel and Hutch - have a New Year's gift for all customers who subscribe to their pre-paid scheme. They are offering lifetime mobility for just Rs 999.
This latest salvo is likely to intensify the war for pre-paid subscribers further. Tata Indicom was the first service provider to come up with a similar offer with the ‘non-stop mobile’ scheme.
Though the Average Revenue Per User (ARPU) could take a dip after the Rs 999 scheme, Airtel says call rates will be a tad more expensive in this scheme.
"Call rates for this scheme will be a little more expensive. After all we are giving lifetime free. Moreover every time you recharge you get full talktime," Manoj Kohli, President, Mobility, Bharti Televentures says.
Airtel's Rs 999 card is a response to Tata Indicom's ‘Non Stop Mobile Service’ that provides free incoming without recharge for two years.
Tata Indicom managed to get one million new subscribers within 45 days of introducing the scheme.
"The product has met with a phenomenal response," Daryl Green, CEO, Tata Teleservices
Airtel's new product could possibly fare better in the market. This is because, unlike offers, the subscription doesn't come bundled with a CDMA mobile phone. However, for the new users, Airtel will soon launch bundled products.
(with inputs from Sandeep Gurumurthi)
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