The Hindu Business Line : Entry level pre-paid plans from Tata Tele

Tata Teleservices has launched four prepaid schemes targeting fresh mobile customers. These schemes are being offered with a range of handsets including the LG Maxima priced at just Rs 999 and the Samsung Wideo, at Rs 1,499.

"This pioneering effort is aimed at demystifying conceptions around CDMA technology, that it limits the freedom of choice," said Mr Darryl Green, CEO, TTSL, at a news conference here on Wednesday.

The starter prepaid packs range from Rs 99 to Rs 1,499; the last one carrying a validity of 999 days, 10,000 free minutes of Tata Indicom-to-Tata Indicom calls and SMSs worth Rs 500.

Some of the handsets are being offered at a subsidised rate, the Rs 999 one being subsidised by as much as Rs 1,000, said Mr Green. However, in a non-churn situation, this subsidy is designed to be recovered within a year, he added.

He said that such a pricing level would open up a huge market for TTSL. A TTSL survey of students, traders and others had shown that at these price points 22 per cent of them would definitely pick up a connection while 48 per cent could potentially sign up.

Tata Teleservices does not intend to apply for GSM spectrum, said Mr Green, replying to a question. (Its largest CDMA competitor Reliance Communications recently applied for GSM spectrum). However, the company is certainly applying for additional CDMA spectrum, he said.

He also did not concur with the view that Qualcomm's royalty fees made for a large component of the price of a CDMA handset.

He said that Qualcomm is coming up with a single integrated chipset (combining filters and additional components) that is likely to lead to more competitive pricing of CDMA handsets.

Tata Teleservices is applying for licences in three more circles including the North East region and Jammu and Kashmir, he said.

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