RCom offers 50% discount on 3G plans for iPhones

MUMBAI: Reliance Communications has tied up with Apple to bundle the iPhone handset with its service plans. The Anil Ambani-owned telecom operator will offer as much as 50% discount on data service on its 3G, or third generation, network to iPhone users on its network under these plans.

This is Apple's third operator pact in India, it also offers bundled devices with plans Aircel and Airtel. Industry experts, however, say this marks the Cupertino, California-based company's first attempt at bringing the CDMA technology version iPhone to India. Aircel and Airtel have GSM technology-based operations.

"There will be around 140 million more smartphone users in India over the next two or three years. We are gunning to get 40 million of them," said Gurdeep Singh, chief executive (wireless business), Reliance Communications. "The definition of a subscriber ARPU is dead, it is now the screen size that determines the ARPU. The larger the screen, the more the ARPU."

Apple is also one of the only LTE or 4G technology device makers and the latest iPhones and iPads come in variants that can operate on the upgraded technology. Reliance Communications is a passive infrastructure - telecom towers and optic fibre - provider for Mukesh Ambani's Relaince Jio Infocomm, which is the only company in the country with airwaves to provide high-speed internet connectivity on 4G across India.

For Gurdeep Singh, Reliance Communications' chief executive for wireless since May last year, this is the second major operational move for the company. Singh was at Aircel as chief operating officer when the company entered into the first pact with Apple in India. The tie-up is also Singh's second major move at the company, six months after he increased headline call rates.

The pricing proposed for iPhone data users on Reliance Communications at the most discounted plan offering 6GB of data surfing a month at Rs 804, compares favourably with Airtel's parallel offer that gives 1.2GB data at the same price. However, Airtel offers more free calling minutes and SMS.

Reliance Communications will offer premium numbers to new iPhone customers on its network, and free access to applications WhatsApp, Facebook and Twitter for three months.

"We are a younger GSM player in the developed marketsMumbai and Delhi. This should increase our access to the postpaid customer market," Singh said. Postpaid customers account for as little as 5% of companies' subscribers, but contribute over half the revenue in most cases.

Singh said, the plans are being rolled out in seven cities, including Mumbai and Delhi to start with, and are restricted to iPhone users. However, the company will include more handsets as time passes and results are captured, Singh added.

The Anil Ambani group flagship company already has pacts with Samsung, HTC, Blackberry, Lenovo, Nokia for other deals.