The move, under Reliances One nation tariff plan, pre-empts communication and IT minister Dayanidhi Marans announcement of a single tariff under the OneIndia initiative in the first quarter of 2006.
A big hurdle to the OneIndia plan has been the fixed access deficit charge (ADC) of 30 paise. It was believed that moving ADC to revenue share would facilitate OneIndia. However, the Reliance plan has pre-empted that. Its tariff of Re 1 includes the 30 paise ADC. It also throws in 1,100 free SMSs. The plan has a one-month validity and costs Rs 1,100, inclusive of service tax.
Reliances latest move is expected to trigger another wave of tariff reductions by operators across the country as only 1-2 million subscribers separate the countrys top four mobile operators. India already offers the worlds cheapest mobile rates.