Tariff War is going on in India's wireless market and see how Airtel reacts to 'Mobile Tariff War' in recent times. (Using Kolkata circle's tariff)
In June 2009: Rs 102 STV offers all local calls @60p/min for 180 days
In September 2009: Rs 41 STV offers all local calls @50p/min for 1 yr.
In October 2009: Rs 64 STV offers all onnet local&STD calls @1p/sec and all offnet local&STD calls @1.2p/sec for 1 yr. (i.e. 60p/min onnet and 72p/min offnet !)
In November 2009: Rs 54 offers all local&STD calls @50p/min for 1 yr
In December 2009: Rs32 offers all local&STD calls @50p/min for 1 yr
So Airtel's trend is reduction in STV values & increase in tariff validity but no drastic reduction of tariff.
Airtel told that they will not response to tariff war, yes they don't. Bcz call rate/sms rate is still high on Airtel. While Reliance offers 1p/sms (local/national/on roaming) for monthly commitment of Rs11, Airtel charges Re1 for local & Rs1.50 for national sms ! But Airtel had to roll out Per-Second billing & slashed roaming rate also just to match others(Read Tata DocoMo & Reliance)! I guess if Reliance was not there, Indian Telecom market would not be like now! and Tata DocOMo did roll outPay-As-You-Use tariffs.
But see now local & STD call rate is same, so reduction in STD calls only , but local call rate still has space to be cut down ! Well MTS reached a bottom with 1p/2sec with Rs30/month and/or Rs95 for lifelong ! Termination charge is 20p/min , if it is lowered down, tariff will be more cheaper !