The entry of Vodafone saw a further drop in tariffs and the operators have come out with new schemesto retain their subscribers and attract fresh ones. What does this mean for subscribers and for the cellular industry in Delhi? All the four operators Essar Mobile Services Ltd., Bharti Celluar Ltd, MTNL and Idea Cellular services are convinced that the market will only expand and the subscribers will benefiteven more. Their reasoning is that cellular penetration in Delhi, which traditionallyoccupies the third position in other areas, is less than fifty per cent. Therefore, entry of new players will only increase awareness about the facility, the companies say.Moreover, the state-owned MTNL has also been playing with its cellular service for quitesome time. that, with the imminent launch of limited mobility using CDMA (codedivision multiple access) technology by companies like Tata Tele Services will only addto the subscriber base, probably result in further reduction of tariffs, and an even greater widening of the cellular market, according to officials in four cellular companies nowservicing Delhi.
However, the companies also sound a note of caution — any further drop in tariffs will be harmful to the companies, points out one of the officials taking care of the — Sales &Marketing division of the, Essar Mobile Services Ltd, average tariffs in Delhi acrossdifferent plans have fallen by 30 per cent since December with launching of the CDMAservices.Besides the fall in tariffs, what has really happened with the entry of CDMA is aheightened awareness in the market. Mobile penetration in Delhi and its suburbs isestimated to be less than twenty-five percent of the population and the cellular operators believe that this number should definitely go up. It is here that Vodafone decided to target the customers with what it believes are unique products and features. Its emphasis has been on value proposition and brand building.