The Hindu : Phone wars: Bharti prepares to take on Reliance

Online edition of India's National Newspaper
Saturday, Jan 24, 2004

Business

Business

Phone wars: Bharti prepares to take on Reliance

By Our Special Correspondent

NEW DELHI, JAN. 23. Marking the second phase of phone wars, Bharti today announced more attractive terms for its pre-paid cellular phone cards. Its sweetened offer for pre-paid cards comes days before Reliance is expected to announce the launch of pre-paid cards for its cellular services.

The first phase of the phone wars was fought in the courts, corridors of power and before the Telecom Regulatory Authority of India (TRAI), anywhere but the market place. With the Government clubbing together the cellular and limited mobility licences into a unified licence, the terms and conditions for both types of cellular service is the same. This has effectively ended lobbying by both sides and paved the way for a battle in the market place.

Bharti today declared that its pre-paid customers could recharge their cards for any amount beginning with Rs. 50 onwards at its recharging facilities in all the 15 state-level networks. The Rs. 50 recharge coupon provides talk time worth Rs. 25 and will be valid only for three days with a grace period of 15 days. It would thus help retain customers at the low end such as plumbers and electricians who were waiting for Reliance offer before shifting loyalties. Other cellular phone companies are expected to follow Bharti's example in the coming days.

Other offerings include the Rs. 100 recharge coupon with talk time of Rs. 50 with a validity period of one week and the Rs. 200 coupon with talk time of Rs. 115 that would be provided for 18 days. The grace period in both types of cards will also be 15 days and recharging can be availed of even during roaming, said the Bharti Mobility group chief, Manoj Kohli. Bharti's lowest offer so far is a recharge card of Rs. 300 denomination.

The company also announced tie-ups with Samsung and Motorola for handsets. A Samsung cellphone (with Airtel connection) will be offered for Rs. 3,999, which includes free airtime of Rs. 2,000 for a validity of 18 months. A Motorola phone would be available for Rs. 3,299 with a free airtime of Rs. 1,800.

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