Business Daily from THE HINDU group of publications
Saturday, Nov 28, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Saturday, Nov 28, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Telecommunications Marketing - Strategy
Our Bureaus Mumbai/Chennai, Nov. 27 Reliance Communications on Friday slashed SMS charges, further heating up the ongoing tariff war in the Indian mobile telephony market. The company has launched a new plan as per which it would charge customers one paisa per SMS. Unlimited Plan It has also launched another plan where customers can send unlimited text messages by paying one rupee per day. In order to prevent these SMS tariffs being misused by telemarketers, a fair usage cap of 15000 SMS's / month is applicable under the Unlimited SMS plan, the company said in a press statement. “SMS continues to grow every year with more and more innovative ways of utilizing its potential coming in the forefront. Indians are using SMS as a mode of communication to keep in touch with friends and family. With select subscriber groups, SMS is a preferred communication mode over voice calls,” said Mr Mahesh Prasad, President – Reliance Communications. Key objective Talking to Business Line, Mr Prasad said the key objective of this initiative is to grow the SMS revenue pie, which is currently at Rs 5,000 crore, about 5 per cent of the telecom industry. So, overall, there is a “humongous opportunity” to increase the revenue pie both in the CDMA and the GSM sectors. Asked whether this move would cannibalise the voice call traffic, he answered in the negative, saying “our voice call charges have already been brought down to1 paise a second across the country”. To a question on whether the company will be able to sustain the revenue flow consequent to the reduction in the SMS tariff, he said “Initially, we may lose a little, but with the expected new subscriber acquisitions in the GSM segment, where there is a great potential, we can more than make up for the loss.” With this initiative the company expects those paying higher tariff for SMS to other operators will come into RCom network. Consequently, there will be a surge in the overall SMS traffic. Per-second billing not suitable for all: RCom RCom, Loop too join per second billing regime More Stories on : Telecommunications | Strategy | Reliance Communications Ltd
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