Vodafone may fuel further reduction

Mobile tariffs in India fell to attractive low levels with major operators today slashing roaming rates by up to 56 per cent, even as UK giant Vodafone promised to offer cheap rates once it enters the market through Hutch-Essar.

Though the reduction in roaming rates was in response to sector regulator TRAI's order, the coincidence was too striking to be dismissed.

While market leader Bharti Airtel slashed roaming tariffs yesterday, other major players Reliance Communications, MTNL and Idea Cellular roaming rates by 22-56 per cent for both local and STD calls depending upon their tariff structures. Besides they also scrapped the montly rental on roaming service.

Hutch, in which Vodafone has picked majority stake, too lived up to Sarin's words that customers can look forward to cheaper rates by announcing a reduction of up to 56 per cent in national roaming tariffs with no monthly rentals.

Market leader Bharti Airtel cut tariffs yesterday.

Subscribers will also not pay any security deposit for national roaming.

Hutch users will now pay only Rs.1.75 for incoming calls which will now save costs between 5456 per cent, depending on the roaming distance. Outgoing local calls will be Rs.1.40 per minute, while STD calls will cost Rs. 2.40 per minute. There will be no change in cost for ISD rates and SMS or GPRS usage.

State-run MTNL also effected the reduction as per which all local calls on roaming will be charged at Rs 1.40 per minute from Rs 1.50 per minute plus 14 per cent Surcharge.