Reliance Communications is in the process of moving its CDMA subscribers to its GSM network by offering voice and 4G data at very attractive prices. The promotional tariffs are being offered to move their CDMA subscribers to the 4G platform, which it is offering in alliance with Jio.

Even though this offer is currently available to only existing CDMA subscribers to compulsorily migrate them to the GSM network, the move is disruptive nonetheless claim analysts. The scheme has been launched in nine circles -- Andhra Pradesh, Maharashtra, Uttar Pradesh (East), UP (West), Madhya Pradesh, Mumbai, Gujarat, Delhi and Kolkata.

While subscribers can purchase handsets on RCOM's website, no discounts are being offered on handsets of any make or brand, which effectively means that CDMA users would need to invest in new 4G GSM mobile phones. Some analysts believe this may restrict 4G adoption.

According to Religare Institutional Equities, "RCOM's 4G pricing plans, although promotional, still look very aggressive. Its CDMA users (prepaid) can upgrade to 4G for a monthly recharge of Rs 75-97 they will get 150 free voice minutes, free on-net calling and 10GB of 4G data. In contrast, the monthly ARPU for incumbents is Rs 179-194, where they provide ~400 free voice minutes and ~750MB of data per subscriber."

Incumbents have so far waited and not actively indulged in any price war. However, analysts claim that of late, incumbents have started tinkering with their 4G tariff plans. Idea for instance offers 1GB of 4G data at Rs 249 in several states, which is similar to pricing of 3G data packs. Airtel currently offers 1GB of 4G data to postpaid customers with free unlimited calls to other Airtel numbers and music for Rs 649 per month. For prepaid customers Airtel offers 1GB at Rs 250 with a validity of 28 days and Rs 995 for 10 GB.

Jio too is also kicking off a trial phase for new customers. According to some reports, the company has asked employees to refer up to 10 potential customers who would like to test the 4G service for a period of three months. The customers will need to buy a Lyf handset for the same and will get unlimited data and voice free for three months. However, this mail is not widely circulated but sent to only select employees.