Mumbai cell war: Orange cuts pre-paid card charges

Krishna Gopalan in Mumbai

Close on the heels of BPL Mobile’s announcement to reduce prices, Orange has slashed rates on its pre-paid card. Orange will now match BPL’s airtime rate on the pre-paid category at Rs 1.99 per minute compared to Rs 2.25 charged earlier.

Senior officials at Orange told The Financial Express that the new rates would come into effect immediately on its pre-paid facility, JustTalk. “This new tariff will now be across Orange’s tariff plans,” said officials.

It may be recalled that the war between BPL and Orange intensified when Orange slashed its monthly rental charge from Rs 395 to Rs 295. BPL followed likewise when it brought rentals to the Rs 295 level.

The Mumbai cellular market at this stage consists of three players - Orange, BPL Mobile and the MTNL-owned Dolphin. While Orange and BPL Mobile offer pre-paid services, MTNL is expected to launch its service shortly. “It will be interesting to find out how MTNL prices its pre-paid facility,” says a telecom analyst.

The Mumbai circle currently stands at approximately 7,10,000 subscribers. According to September figures released
by the Cellular Operators Association of India (COAI), Orange accounts for around half of this while BPL Mobile has a little over 3,40,000 subscribers. The balance — 20,000 subscribers — is with
Dolphin.

After the government’s decision to allow the entry of the fourth operator, the Bharti group acquired the licence for the Mumbai circle.
The company plans to launch its brand AirTel around March next year. Bharti Group chairman Sunil Mittal had earlier said AirTel will most likely look at a combination of churning and corporates to attract new subscribers.