Unitech Wireless, a new entrant to India's mobile phone services market, will continue to offer attractive phone call rates

Unitech Wireless Ltd., a new entrant to India's mobile phone services market, Monday said it is watching the effects of recent price increases by its larger rivals, but that it plans to continue to offer "attractive" rates.

While not saying outright that it will keep rates low, a spokesman told Dow Jones Newswires that, "as a smaller player competing against established brands, Uninor will have to remain very attractive to its trade and customers."

Uninor is Unitech Wireless' mobile services brand. In May, Unitech Wireless started offering pre-paid customers the cheapest mobile call rates in the country at INR0.02 a minute for calls within its network, sharply lower than its previous lowest call plan of INR0.01 a second.

In comparison, market leader Bharti Airtel's cheapest plan is now INR0.72 a minute. Unitech Wireless, a joint venture between Norway's Telenor ASA and Indian real estate company Unitech Ltd., launched mobile phone services at the end of 2009 and controls a little over 3% of India's 851.70 million mobile phone user market.

The company's comments come at a time when the Indian telecom industry is emerging from a bruising price war which led to ultra-low call charges and hurt profits.

Bigger companies such as Bharti Airtel Ltd. and Idea Cellular Ltd. recently raised call rates by a minimum of 20% for some plans.The Unitech Wireless spokesman said the company will support "rational" mobile charges in the industry. He didn't elaborate.

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