IT IS OFFICIAL:
DOT accepts TRAI limits
DOT HAS decided to accept Trai recommendations allowing basic telecom operators to offer short distance mobile telephone services based on wireless in local loop technology. This will bring down the cost of short distance mobile calling to one twentieth of current cellular rates.
economictimes.com
What this means is that all wireline operators in india will be able to offer WiLL service in their respective areas. If this sticks, this is huge IMO. Will start to mushroom next year.
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CDMA WiLL vs GSM battle to start:
business-standard.com
MTNL kicks off cell price war
Our Corporate Bureau in Mumbai
Mahanagar Telephone Nigam Ltd (MTNL) will charge Rs 1.50 per minute for incoming telephone calls and Rs 2.70 per minute for outgoing calls on its cellular service.
The monthly rental charge will be Rs 400. Other details of the service, such as the security deposit, were being worked out, communication minister Ram Vilas Paswan announced today. The state-run company will offer a free voice mail service through a secret number which will be given to each customer.
However, unlike private players such as BPL Mobile, it will not offer free mobile services during the night. One-third of the connections will be reserved for women in Delhi, where the service will be launched on January 31.
The company is planning to offer one lakh connections in the first phase of the operations. The capacity would be enhanced to three lakh in the next phase, MTNL officials said.
Industry analysts say though the competition to private players from MTNL would be immense, billing and quality of services will be the major determining factors for new customers.
When contacted, Sandeep Das, chief executive officer of Hutchison Max Telecom, the mobile licensee in Mumbai, said: “The company is planning to assess the situation. We have enough time to take any decision on this.”
The major offerings from MTNL include 2.5G services, local broadcast, short messages and voice mail. MTNL is also planning to set up 50,000 wireless in local loop lines using CDMA technology in Mumbai.
For this purpose, the company will source equipment and other technology from Fujitsu of Japan. Subject to approval by the government, MTNL will also offer limited mobility using the WiLL technology in Mumbai.
AirTel to respond next week
Private mobile service providers in Delhi and Mumbai seem to have no option but to bring down their tariffs. AirTel, the mobile service provider in Delhi, said it will announce a cut in its tariffs next week.
Sanjay Kapoor, chief executive officer, AirTel said, “We will announce a competitive price cut next week for our three lakh customers. However we do not intend to match the MTNL tariff penny for penny. We will be offering more user friendly package for our customers.”
Kapoor added that price was only one of the factors when it came to choosing a particular mobile service.
“AirTel’s quality of service in terms of its content partners, customer care centres, WAP and SMS services is way ahead of what MTNL is offering.” Kapoor said.
Sources in Sterling Cellular, the joint venture between Essar and Hutchison in Delhi, said that the company will respond to the MTNL move soon.
Sandeep Das, chief executive officer, Hutchison Max, cellular service provider in Mumbai and the joint venture partner in Sterling said , "The company is assessing the situation. We have enough time to take a decision."
Highlighting the impact of the low MTNL tariff on private cellular operators T V Ramachandran, director general, Cellular Operators Association of India (COAI) said that the low tariff announced by MTNL will push down the break even point of private cellular operators.
"While reduced tariffs will widen the market base it will be difficult for private operators to match the tariffs as private operators had to invest heavily on areas like revenue share fees and entry fee which MTNL will not have to " said Ramachandran. |
