The telecom battle is getting fierce, and the latest service provider who is throwing the gauntlet is Anil Ambani’s Reliance Communications. Reliance Communication has made all voice calls in India free for all those who recharge with a coupon of Rs. 149 per month.
What Reliance Jio can do, Reliance Com can do better. The latest move will have a bigger impact than its bigger rival because this tariff is valid for 2G, 3G, and 4G calls.
The telecom scenario is changing in the country as consumers move away from the Revenue per Minute tariff model to a service subscription regimen based on ARPU. The latest move by RCOM will revolutionize the dynamics of mobile recharges in India. The latest “149 Unlimited” no strings attached plan will afford free calling and is targeted to incentivizing the 2G, 3G, and 4G platforms and encourage India has a sizeable number of 2G smartphone consumers, and it is a shrewd move by RCOM to shift these customers to its network along with 300MB data free.
Apart from which type of Smartphone one is using, all consumers will be getting unlimited voice calling. This includes STD calls to any network in India along with 300MB of free data access in all its networks.
Though RCom is considered a smaller player when compared to Bharti Airtel and others, its latest move will cause a significant disruption in the profit and revenues of its rivals. At present the operator gets 50 paise for each minute of the voice call. However, the profits will now shrink to 16 paise per minute. The Anil Ambani Company is increasing its towers and also integrates its network with Aircel and MTS in the coming months.
It remains to be seen if the company can improve its performance as compared to its major rivals like Airtel and Idea. For now, there has not been any significant impact on its rival’s shares.