In what could be a bonanza for the over 6.8 million cellular phone users in India, all leading operators are planning to offer free incoming calls between mobile phones. Discussions are on among the major operators to come to an agreement and announce the decision together under one platform.
At the moment, only 10 per cent of the total cellular calls are mobile to mobile. The industry expects this percentage to go up dramatically if incoming calls are made free. The increase in use and customer base is expected to largely compensate for the decline in revenue.
Cellphone users now have to pay for incoming calls at rates ranging from Rs 1 to Rs 1.70 a minute. However, in some pockets like Tamil Nadu, the C Siva- sankaran-promoted Aircel has made incoming calls free (both from mobile and also from fixed lines) but charges a slightly higher rental to compensate for this.
Confirming the move, a source close to the negotiations said it would help expand the cellular market and would be an effective means of tackling competition from limited mobility operators who have a price advantage. Wireless in local loop operators are allowed to offer free incoming calls and there is a fear that this might attract a lot of customers. Large operators of limited mobility services include Reliance, which is setting up an all-India fibre backbone, and the Tatas.
Industry sources say the move has been initiated by cellular operators that are rolling out services in new circles as the fourth player.
Most of these companies face tough competition from existing players and are looking for ways to gain customers. A big bang announcement of this nature can give a major fillip to the market.
The Bharti group, for instance, is launching its services in 10 new states, including Maharashtra as well as Mumbai, where it faces tough competition from Hutchison-Essar and BPL. The Hutchison-Essar group is launching operations in Karnataka, Andhra Pradesh and Chennai.
The Tata-AT&T-Birla combine, through its brand Idea, is set to launch operations in Delhi where it faces Bharti and Hutch.
But some experts point out that the move for free mobile to mobile incoming calls might face opposition from basic service operators who might challenge the decision by pointing out that it discriminates against customers who use fixed-lime phones.
