Sunday, 19 April 2009

Virgin Mobile India reduces call payout – India

As a consequence of the Telecom Regulatory Authority of India’s (TRAI) decision to lower termination charges, Virgin Mobile India has announced that it will halve the rate it pays customers to receive incoming calls, from INR 0.10 to INR 0.05 a minute.

Commenting on the rate cut M A Madhusudan, Chief Executive Officer of Virgin Mobile India, said: “Importantly, despite the changes, we will not make it zero, so that customers continue to get the benefit since even today no one (other than us) offers this service.

“If you look at our overall calls, initially, the number of incoming calls was more. As the subscriber base has grown overall, it has almost become 50-50. So, if my 30 paise has gone down, my outflow has also increased by the same. So, in terms of the financial impact, it is not a big negative.”