Reliance pre-paid for V-day launch

MUMBAI: Catching up on the growing pre-paid market for mobile connection, CDMA mobile service provider, Reliance Infocomm would be launching its pre-paid service on Valentine’s Day this year, February 14^th 2004.

Sources on the condition of anonymity confirmed the pre-paid launch. It is also alleged that the company is planning to launch a pre-paid in Rs200 denomination with a talk time of Rs135.

Though new subscribers will have all the reasons to smile, it’s going to be a stumbling block for the existing (post paid) subscribers. All the subscribers will have to buy a separate handset to go for pre-paid. To start with Reliance Infocomm is offering ‘Motorola’ handset for Rs3,500.

It means a new pre-paid subscriber or an existing Reliance post-paid subscriber will have to pay Rs3500 to go for pre-paid wherein he will get a Motorola handset and Rs200 pre-paid card. Thereafter the subscriber will have to pay Rs200 monthly to recharge it.

Reliance is also planning to launch a series of promotions designed to attract customers for pay-as-you-go service. The company is also expecting a huge cell subscriber base to migrate on pre-paid.

But analysts have their doubts on the service. According to them Reliance post paid subscribers cannot go for pre-paid because of the handset issue and even if they go they will have to pay huge amount for the handset they are using right now.

Reliance is eyeing for new subscribers and not the existing post paid ones to migrate to pre-paid. These new subscribers could be the existing pre-paid cellular subscribers or new mobile subscribers.

CyberMedia News Service