Tata Tele to up ante in fixed wireless war

Tata Teleservices (TTSL) is all set to counter Reliance Infocomm's tariff plans for the code division multiple access-based fixed wireless phone (FWP) services.

Sources at TSSL said on Thursday that the company will match the tariff plans of Reliance.

Reliance Infocomm officials claimed that its FWP plan will offer abundant free calls. "Subscribers can save up to 50 per cent on ISD calls, while SMS will cost only 50 paise across the country, and incoming messages are absolutely free. In fact, all these services are ready from day one," a Reliance executive in Ahmedabad said on Wednesday.

Reliance subscribers will have the option of Plan 500, Plan 1000 and Plan 1500. Subscribers will be provided a LG handset and, in fact, TTSL is too offering the same instrument, FWPP LG LSP340E. Apart from other usual facilities of a fixed telephone, Reliance will offer internet services under Plan 1000. This, according to Reliance officials, has been targeted at medium and high-end users.

"They have a three tariff plans but we have already six tariff options and all are created according to the needs of specific subscribers. SMS to GSM and CDMA subscribers will also be available for FWT subscribers and I can bet that we will prove our superior services," Jagrut Vyas, chief operating officer, TTSL, said. Vyas said a core team of TTSL is working out internet facilities for its FWT subscribers and will be made available shortly.

A senior TTSL official said, "We have already drafted the modified tariff plans to match the Reliance offer and this will be formally unveiled on Thursday across the country. The number of free calls being offered by Reliance FWP will not make a difference compared to our new offer and there will be more sops for FWT subscribers."

It has been learnt that TTSL, which has been offering 60 free calls under its Basic-250 scheme with a monthly rental of Rs 250, will increase the free calls to 150 to lure low-end subscribers.

Relinace, which is yet to have a such low-end scheme, offers 450 free calls under Plan-500 which is comparable to TTSL's Economy-499 plan. At present, TTSL under this plan is offering only 300 free calls but from Thursday, it is expected to be 450 free calls under the scheme.

Tata Tele will also slash the rate after every free call to Rs 1.10 per three minute unit (fixed line to fixed line) against the current Rs 1.20 as Reliance is also offering Rs 1.10 for every additional call made under its Plan-500 scheme.

It also has been learnt that TTSL is going to increase its number of free calls to 1,000 from the existing 900 under its Privilege 1000 plan to match Reliance's similar package of 1000 free calls under Plan 1000.

Reliance is offering per additional call unit at Rs 1 under the scheme, while TTSL is offering additional call at Rs 1.05 per unit, which will be revised to Rs 1 per unit.

To match Reliance's offer of 1,750 free calls under its high-end tariff plan, TTSL, which is offering 1,650 free calls under its Corporate 1500 plan, is planning to increase its free calls to up to 1750.

TTL is also going to revise its rate of additional calls to 90 paise per metered call from the existing Rs 1 per unit. Tata Tele is also learnt to be revising its Executive-725 and Exclusive-2250 plans, which do not have yet any competition from Reliance Infocomm.

"TTSL will increase free calls up to 700 from the existing 600 under the Executive-725 plan, while under Exclusive-2250 plan, TTSL will increase free calls up to 2,800 per month against the existing 2,450 free calls. Additional calls will be charged under 90 paise per unit under the Exclusive 2250 plan, while additional calls will be charged at Rs 1.05 per unit under the Executive 725 plan," the TTSL official said.

Interestingly, both the service-providers have decided to charge Rs 800 for installation and activation of fixed wireless services from each subscriber.

Reliance has, however ,waived the installation charge under Plan 1000 and Plan 1500 for a limited period. "This is an attempt to lure fresh subscribers but one has to watch how long this waiver will ultimately remain," a TTSL subscriber said.