NEW DELHI, India-The state-owned fixed-line provider MTNL has launched its GSM cellular phone service in Mumbai, India’s commercial capital, leading to a tariff war. The two incumbent private providers-BPL Mobile and Orange-have slashed their airtime tariff drastically.
MTNL last month launched its service under the Dolphin brand name in New Delhi.
It hopes to attract at least 25,000 cell-phone subscribers during the first quarter of operation in the two cities.
The two private cellular phone companies have slashed their tariffs by more than 60 percent for incoming calls and by 40 percent for outgoing calls to stave off competition from Dolphin.
Officials of Orange and BPL mobile said they will focus on providing value-added services, to retain their market share. They have already tied up with various service providers like premier hospitals and boutiques to offer discounted services to customers.
