Airtel cuts mobile roaming rates by 60%

Telecom major Bharti Airtel (BHARTIARTL.BO : 317.1 +3.3) cut mobile roaming rates by 60 per cent for its 115 million users, opening a new turf in the ongoing tariff war.

Under the new plan 'Airtel Turbo', users will be charged 60 paisa per minute on all incoming calls while roaming. The 60 paise rate will also apply to local and STD calls within its own network.

Despite profitability getting affected with tariffs touching new-lows, companies are eager to catch the volume growth as subscriber numbers are going up.

The local and outgoing calls to another network on roaming will be charged at 80 paise a minute, a statement said.

"These reduced roaming tariffs spells huge benefits of up to 60 per cent for all Airtel users who would enrol under this plan," it said.

"Recent research has shown that customers need benefits while travelling and are not satisfied with just local calling benefits", Bharti Airtel President (Mobile Services) Atul Bindal said in a statement.

Airtel Prepaid mobile customers wishing to avail this benefit will be charged a plan enrolment fee of Rs 98, which will give an incoming validity of one year, while postpaid users can subscribe to a monthly rental plan.

Bharti's stock was down 1.55 per cent at Rs 288.30 on BSE (^BSESN : 16027.59 -14.59).