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Friday, December 11, 1998

Iridium to charge Rs 75 a minute for domestic satellite call 

Neeraj Saxena & Sidharth Zarabi  
New Delhi, Dec 11: Iridium India's subscribers are likely to be charged at the rate of Rs 75 a minute for domestic satellite calls.

The average rate, according to sources, has been calculated on the basis of the maximum prevailing per minute STD rate plus 16 per cent cellular charges and 30 per cent premium over that. Analysts, however, said Iridium would find it difficult to offer its service at such low rates, adding the actual tariff in the initial months would be around Rs 150.

The rate for subscribers will be uniform for a call made within the country, but could work out to be be slightly lesser for corporate-account holders. Iridium plans to group the corporate-account users and offer discounted rates.

The company will introduce three customised packages for high-end users with different slabs, offering incentives for higher usage. Iridium has started targeting corporates, whose employees require seemless global telephony, through mailers and direct contact.

Subscribers will not be charged for calls received on their handsets. For international callers, Iridium has classified the globe into 14 zones. "It is a very complex formula. Per-amount charges will depend on the distance," sources said.

Calls to the USA (north America zone) will be the costliest, while south Asia and China zones will be the cheapest. Europe has been classified into three zones: north-west, north-central and eastern Europe.

Iridium will directly provide services to targeted corporates, as dual-mode phones, through which calls can be switched to a cellular network, will be available only by January-end.

Having started its advertisement campaign, the company is already negotiating with a few corporates, sources said. Individuals will have to approach cellular operators offering the service. The company has already tied up with 16 operators across the country. Handsets will cost between $3,000 and $3,500.

However, both corporates and individual customers will have to wait for the service, as the company is yet to recieve the directorate-general of foreign trade (DGFT) approval for importing 300 single-mode handsets for sale.

Sources said the permission is expected to come through before December-end.

At present, Iridium India is able to handle calls terminating at its network from anywhere in the world, but calls originating from domestic PSTN is not possible except in Chennai, Mumbai and Pune, permission for which was granted by the department of telecom on Friday. Subscribers in other countries can operate their handsets if they are visiting India, save for the doemstic PSTN limitation.

Iridium India is still awaiting the 100 handsets it wanted for field trials and demonstrations. The company will begin selling handsets from the commercial quota once the trials are complete.

The commerical launch will have to await the settlement of crucial inter-connect issue and tariff approval by the Telecom Regulatory Authority of India. Iridium has already applied to the body for approval of its tariff structure and has recieved an in-principle nod pending a written permission, sources added.

Owing to lack of handsets, the company had to get 10 single-mode handsets imported under the open general licence of Exhibitions India for Comms' India show. It offered the visitors to the show to try out its service by dialing anywhere in the world and try the service at its expense. These handsets will be sent back now that the exhibition is over.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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