The battle for supremacy in the 2G Wireless Space has intensified with Reliance Mobile [GSM] and Idea Cellular launching SIM cards to end customers at Rs 25 or 0.5 USD. [Yes that is correct] When we did a ground price check, this scheme was available in Mumbai Circle as well as Karnataka. Idea did a brand makeover of Spice Tele in Karnataka very recently after taking over the company. Idea is offering lifetime validity on the same 🙂

However, Bharti Airtel and Vodafone are maintaing the entry cost at Rs 99 for Lifetime Validity Pre-Paid Pack, down from Rs 195. Call charges are at Rs 1 / minute which looks like a lobby. An upfront revenue recognition policy and launch mode operations in several service areas suggest that the potential dent on revenue could be higher for IDEA relative to Airtel, in our view.

Reliance Mobile GSM which is still testing its network and operations will likely to intensify the tariff war once confident of smooth services. Do you see any business case for operators fighting for new license / spectrum now ?