Friday, August 06, 2010

Anything cheaper than this ??

Tatateleservices , owners of Tata Indicom and Tata Docomo mobile telephony services in India has just offered the world's cheapest mobile tariffs for their CDMA based customers. Innovation by offering the cheapest, trusted and cleanest services, hallmark of TataSons.

Rs. 0.3/min for talking to anywhere in the country (STD), local call is Rs. 0.5/min. Less than 0.6 cent for a distance of upto 4000 kms for a duration of 60 secs,

Can you get anything cheaper than this in the world ??



  1. Hello Dr. George,

    Thank you very muuch for bringing this out. Could you please analyse how this cost cutting strategy was worked out without compromising on quality.


  2. According to the info available with me, Relaince and Tata were the two major players who have put the necessary infrastructure in place to enable such drastic reduction in tariffs in the long run.

    Having invested heavily in putting wireless eqpt and OFCs in place, they could ill afford not to get revenues for the investment which they had already made.

    Tata started the tariff war when after colaborating with Docomo of Japan they started the first 1 paisa per second plan and got everybody else including Vodafone, Hutch and Reliance toeing their line lest they lose their market share..

    Tata have a very solid base and hence can run on very lean profits for many years and catch up / wipe out quality competition. They may not be looking at getting their revenue from the basic tariffs but from other value added services.

    It is their small contribution to the country to help it gallop at 20 million new connections every month to outpace China as the world's top mobile player in the mobile services market.

    One day they will overtake China and that day is not too far ..



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