Reliance Communication today joined the bandwagon of cellular service providers like Bharti Airtel , Vodafone and Tata Docomo that are slashing data tariffs to woo new customers.
"We are going to offer them 2GB data free when they enroll with us on 3G and our attempt is to rebalance our equation of high and mid value customers as we are a young GSM player in most of the A and B circles," Singh said.
Singh hopes that out of 100 million phones being added over next two years in the 13 circles it operates in around 40 percent will come on to the 3G network of Reliance .
Singh said that while competition had become unbearable in the voice segment, data services yet have lot of potential to grow.
"On data front we still feel the adoption of 3G data is suboptimal to the investments we have done in the spectrum and the networks that we have laid," Singh said.
Below is the verbatim transcript of the interview
Q: What kind of potential addition you see in 3G data users going forward?
A: Of the 100 million phones being added in the next two years in our 13 circle operations, we believe 40 percent of those will come on to the 3G network of Reliance.
Q: Going forward what would be the strategy that Reliance Communication is going to adopt to ensure that you are able to pull those customers away from these three GSM players?
A: Today we also launched very attractive mobile number portability offer to woo the mid and the high value customers from the other telcos. We are going to offer them 2GB data free when they enroll with us on 3G and our attempt is to rebalance our equation of high and mid value customers because we are a young GSM player in most of the A and B circles.
Q: As we go forward the trend that one is seeing is that even though telecom companies have been reducing data tariffs, voice tariffs have been going up. Is this trend something that is going to continue or it is just a matter of acquiring more customers and then eventually probably prices would be brought back to the earlier levels?
A: Both voice and data are two separate issues. In voice we have gone through a hyper competitive stage which really brought the prices down to unbearable levels. Now the competitive intensity is settling down and we are no longer in a position to absorb the shocks of the input material and the inflation, and thus the prices of the voice will begin to move in that line and direction. Having said that on data front we still feel the adoption of 3G data is suboptimal to the investments we have done in the spectrum and the networks that we have laid.
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