Reliance Infocomm Uncorks Limited Mobility Genie
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Mumbai/New Delhi, December 27: The genie is out. Reliance Infocomm, a wholly owned subsidiary of the Rs 65,000-crore Reliance Group, on Friday announced the launch of its nationwide limited mobility services under the brand name Reliance IndiaMobile at affordable prices for the masses.
INDIA GETS MOBILE: Union communications minister Pramod Mahajan unveils Reliance’s WLL services in Mumbai. Also seen is Reliance Industries chairman Mukesh Ambani
The billing at 15-seconds pulse rate will be just 10 paise, making it the lowest entry price. Unveiling three schemes on offer, Reliance Group chairman and managing director Mukesh Ambani said the cost of a national long-distance call under the “Dhirubhai Ambani Pioneer” scheme to any Reliance phone in the country would be 40-paise a minute. In addition, users would get 400-minutes of outgoing calls free (instead of 800 minutes of airtime proposed by Reliance) for a 15 seconds pulse and over and above 400 minutes call will be charged at 40 paise per minute with a 60 seconds pulse.
Interestingly, Reliance Group vice-chairman Anil Ambani was conspicuous by his absence at the launch ceremony, and was reported to be away in New Delhi.
Prime Minister Atal Bihari Vajpayee switched on the network live through a video-conferencing from his New Delhi residence. Union communications minister Pramod Mahajan said that he had written to Telecom Regulatory Authority of India (Trai) to remove barriers in the cellular business and allow any number of players in the cellular space, subject to available spectrum and level playing field. He added that as the cellular revolution was coming, litigation was also increasing in the sector.
“There is room for everyone in the sector as opportunities are huge,” added Mr Mahajan.
How is competition reacting to the Reliance Infocomm rollout? Bharat Sanchar Nigam Ltd (BSNL) chairman and managing director Prithi Pal Singh seemed undeterred by the competition from Reliance, and said: “Compared to Reliance, we have a much larger network with us. And we will continue to give cheap services.”
On the other hand, Mahanagar Telephone Nigam Ltd (MTNL) chairman and managing director Narinder Sharma remarked: “Reliance is a huge player, and for us it means an increase in challenge. But we will definitely meet the challenges. We are no longer a monopoly and are going to restructure the company to operate in a competitive environment.”
At the inauguration ceremony, the Prime Minister said that he wished to visit the Dhirubhai Ambani Knowledge City (DAKC), the sprawling, futuristic nerve-centre of the Reliance Infocomm initiative in Navi Mumbai, when he comes to Mumbai next. Mr Ambani, on his part, said that it was through Mr Vajpayee’s leadership that the economic reforms programme had gained momentum.
For the financing scheme under the Pioneer offer, which ends on March, 2003, the initial membership fee is Rs 3,000 and the monthly charge is Rs 600. A subscriber will have to pay Rs 24,600 for three years, while if he opts for “full upfront option” the subscriber needs to pay Rs 21,000.
The consumers will be given a free digital mobile phone, unlimited free incoming calls. Value added services like voice mail, call waiting, call hold, call divert, call identification, call conferencing, dynamic STD/ISD locking and text messaging would be offered for free as also Internet access.
The scheme also allows for exchange of the current mobile handset, a suite of data applications initially at no content charge and discount coupons for various products and services from the most popular retailers.
“The pricing system is in line with Dhirubhai Ambani’s dream and directive of making phone calls affordable for every Indian. It has been made possible due to the significant capital productivity achieved,” said Mr Ambani, while revealing the price structure.
Of the other two plans, the first one envisages Rs 14,400 upfront for 3 years plus Rs 10,500 for handset and the second plan, which is the standard plan, envisages Rs 400 per month covering rental (Rs 200) and talktime (Rs 200). The initial rollout plan is to network 673 towns and cities in the next 45-60 days. “We will eventually connect all the 640,000 villages and over 2,000 towns and cities,” said Mr Ambani, adding that it will be the largest infrastructure and services rollout in the information and communications sector by any new entrant anywhere in the world.
Nationwide demonstrations to consumers would begin on January 15 and bookings would start in early February. By the end of March, Reliance Infocomm will close bookings for the Pioneer scheme, he said. Reliance Infocomm has already committed Rs 11,000 crore into the project, of which Rs 6,000 crore is by way of equity. Commenting on the $200 m investment of Qualcomm, Mr Ambani said it would be reviewed in six months. |
