It’s very very simple. This 40 Paisa story is only a clever word. If we put it on the regualar mobile telephony language, its nothing but the airtime. Now consider a mobile network which spans through major cities in India and the airtime is 40 Paise. Thats Reliance.
The Pros.
Reliance to Reliance throughout the nation is only 40p
Seamless Roaming in 673 Cities
Monthly 400Mins Free
SMS Free (The Messages are reaching GSM Networks)
Free Incoming
3G Network
The Cons.
You are bound to use it for a minimum of 3 years
You are charged a hefty amount for the handset....Indirectly
The handset you get is only a LG/Samsung CDMA Handset which is worth a few thousands only.
Now loot at this split up.
600
400 free minutes at 40 Paisa per minute
600-400=200
Rental and Finance charges = 200
Initial 3000/-
The actual worth of the handset will be only 3000Rs.
Point of Interconnect with other operators is still a big Question mark.
COAI has made a unanimous decision not to provide POI to Reliance
MTNL, BTNL and BSNL will not be giving the POI without any hassles
So, It’s a superb business for Reliance. And for users..... we’ll have to wait and see.