Taking the GSM competition head-on, Tata Teleservices brand franchise Virgin Mobile, reduced its STD and local call rates to 50p/min. The catch here is that this call rate can only be enjoyed after a user is done with his/her initial three minutes of local and STD calls which would cost Rs 1.50/min and Re 1/min respectively.
Virgin Mobile, which is a youth centric telecom service, has made an excellent move by slashing the STD charges. According to a recent industry research, STD calls comprises of around 25% of the total bill amount of an urban young subscriber. So this offer will definitely meet the behavioral needs of youth customers by providing a value proposition on long distance calling.