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Airtel to Airtel local calls drop to 15 Paisa

August 24th, 2006

Bharti-Airtel today kick started a tariff war in the local call segment for mobiles. After Hutch reduced their tariffs to 30 paise/minute, Airtel reduced to 15 paise/minute. In my experience, Airtel is probably the best GSM network in India and it can easily command a premium but this time looks like Mittal has a big and a different game plan. One of his best moves was to outsource telecom network management to Ericsson.

Sources said Airtel’s new offer will be available to post-paid users under its Celebration 299 plan and Airtel Talktime 299 plan. For the pre-paid category, new users recharging with Rs 350 voucher can make calls for 15 paise per minute without paying any extra charge for 60 days. Similarly, those opting for Innowest, 222 and 456 plans can make calls at the new rate for three months. Existing pre-paid customers will have to pay Rs 49 per month to convert to the new scheme.

This is the lowest rate offered by any mobile operator since the launch of cellular services in India.

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