RCOM launches 3G services in Metros

Mr Anil Ambani-promoted Reliance Communications has become the first private telecom operator to launch third generation or 3G services in Mumbai, Delhi, Kolkata and Chandigarh.



By the end of the current fiscal, the company plans to extend its reach in the 13 circles for which it has already secured 3G licences, RCom's Chief Executive Officer for wireless business, Mr Syed Safawi, said at a news conference, here on Monday.

RCom will offer 3G service plans starting from Rs 199 to Rs 2,499 a month, he added.

It will offer daily, weekly and monthly tariff plans. The company has a bouquet of 110 television channels for its subscribers on the mobile phone. Subscribers can pay Rs 10 for accessing a single television channel on a daily basis. For a monthly price of Rs 250, 75 channels can be viewed.

3G services are expected to facilitate faster Internet on mobile phones and help operators grow their data revenue in a market where voice calls have historically dominated. “Non-voice revenue should go up to 30 per cent for the industry in the years to come. We should be at the higher end of this,” said Mr Safawi, adding that non-voice revenues for the telecom industry currently hovers in the range of 11-13 per cent.

While state-owned telcos BSNL and MTNL were the first to launch 3G services, Tata Teleservices was the first private player to unveil 3G offerings last month. Bharti Airtel's 3G launch is expected by the end of this month, while Vodafone Essar will join the bandwagon in the January-March quarter.

Will the 3G space also see a new round of tariff wars similar to what happened last year after stiff competition among the 12 telecom operators caused a drastic slide in call rates? “We don't see a price war in 3G. Even 2G prices are stabilising. The competition will be on content and innovation in services,” Mr Safawi said.

RCom is targeting a national footprint of 3G services by partnering with other “like-minded, quality 3G licencees” in the remaining nine telecoms zones during the course of next year, it said in a statement.

RCom had spent $1.9 billion for securing 3G radio airwaves in an auction early this year.