Tuesday, February 14, 2006

Reliance and their strategy

As I had been scouting over the various phone service providers, I decided to check on Reliance and their "One Nation, One Voice and One Rupee plan" with the fixed wireless phone. In this activity I did attain my goal but also suffered some brunt.

The Wireless handset that I picked is LG 350R which is quiet sturdy with all mobile type applications and options in it. The voice clarity is good and the instrument weighs light compared to the one supplied by Tata Indicom Walky. It has a built in Lithium ion battery and when it is charged to complete, the phone automatically switches to use AC power for its operations until it plugged out from the power.

I have been using it for more than a week now and I didn't face any poor signals or call drops. A good sign of service.

But the strategy that reliance opts for this service is bit weird. The model of service is based on the type of residence you have. It is not purely based on your salary or your capacity to pay the bill. For instance since I stay in a rented house along with my friends, I had to pay advance rental of Rs 1000 and the credit limit for my connection is just Rs 1000.

When I reach this credit limit, I need to settle the bill with the reliance and then renew my credit even when the billing cycle is not complete. Basically this is done to prevent defaulters from getting a connection, using it to maximum limit and then running off. This rule doesn't suit to every other customer.

Certainly the One nation tariff has lesser impact on one's pocket with increase in the call volumes. To prove my claim, let me assume that I make 1000 mins of STD calls.

With Airtel :
Rental : 150 + 50 (clip) + 75 (STD pack)
Call charges: 1000 * 2 = 2000
Service tax: 227

Total: Rs 2500

With Reliance:

Rental: 499 + 50 (clip)
Call Charges: 1000
Service tax: 155

Total: Rs 1700

So ultimately this exercise will save me Rs 800 per month and I recover the installation charges within the first month. All provided I make 1000 mins of call. The more the call volumes the cheaper the rates will be.

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