RComm cuts SMS charges to 1 paisa

NEW DELHI, INDIA: Reliance Communications, India's No. 2 mobile operator, on Friday slashed SMS charges, further heating up an ongoing price war in the Indian mobile market.

Reliance said it would charge customers just 1 paisa per SMS in a new bill plan.

The company also launched another plan where customers can send unlimited text messages by paying 1 rupee a day.

The new SMS tariff plans are add-on plans and are applicable for all Reliance Mobile customers irrespective of CDMA or GSM network as well as prepaid and postpaid customers.

“Indians are using SMS as a mode of communication to keep in touch with friends and family. With select subscriber groups, SMS is a preferred communication mode over voice calls. Considering this, Reliance Communications with its 1st in the industry initiative, aims to revitalize SMS usage in the country”, said Mahesh Prasad, president – Reliance Communications.

All Reliance Mobile customers, regardless of the tariff plans they have for voice and data services, can avail of the 1p/SMS plan by subscribing to a Standard Tariff Voucher of Rs. 11 per month. Or the unlimited SMS plan can be subscribed to by Reliance Mobile customers on a daily deduction of Re. 1 per day from their prepaid balance.

Currently operators charge between 0.5 and 1 rupee for local and national SMSes.

The initiative will burn a hole in the pocket of Reliance Communication, accordind to a Voice and Data report. Reliance Communications stocks were down 1.54 per cent at Rs 166.30 in the afternoon trade on the BSE.

Trai has been telling the operators to reduce the SMS tariffs since the price of sending an SMS is just 4-5 paise.