Mobile Tariff War in India

India is a very vast country with its population reachingintroduction of new per second billing system in which
around 110 crore, it's supposed to overtake China inthe user will be charged per second rather than the
population within 10-15 years from now. So there is aper minute basis, so if you speak for around 30
very, very huge market here for the telecomseconds you will be charged 30 x per second call rate.
operators. Operators from all over the world are in aWith this all other operators were also forced to begin
race to invest in the telecom market of India.the same system of per second billing. The call
India has mobile operators for GSM and CDMA, thecharges that were introduced by Docomo was 1 paise
GSM players are Airtel, BSNL/MTNL, Vodafone,second.
Reliance, Idea, Tata Docomo, Aircel, Uninor. The CDMAMTS being the new entry to the Indian mobile market
operators include Tata Indicom, Reliance, Virgin Mobile,is a CDMA player, introduced 0.5 paise/second plan.
MTS. Most of the market share is held by theAlso other operators are giving offers like 10,000
operators like Airtel, BSNL/MTNL and Reliance.seconds free per month or 5,00,000 seconds free per
With the recent increase of the operators the tariffmonth on a small recharge amount. Well if not its
war between these to sustain in the market has alsodifficult for them to sustain in India, because people
increased, its intensity is getting more day to day. Initiallyhere like change, so they will readily accept a offer
the Sim card in India was sold for around $2 or Rs.99that is more economical than the one they are having.
but now it has gone down till $0.5 or Rs.25, even less.If this continues like this, a situation might come where
Sim cards are being sold roadside just like vegetables.the operators might give domestic appliances like
There were offers like 3 Sim cards of differentmixer, grinder etc free with a Sim card to attract the
operators being sold for just $2 or Rs.99, such is thecustomers towards them. Ultimately its the user who
situation in India now.will be befitted from these tariff war and to some
Tata Docomo took a revolutionary step with theextent the operators too.