CMSPs in each circle and metro. They are facing intense competition and working hard to gain maintain their market share. Along with the increasein spply of mobile services! there is an improvement in "ality! which has reslted in mobile service being treated as commodity like #ast Moving Consmer $ood %#MC$&. The tari' of prepaid service is normally more as compared to Post paid services. TheIndian mobile service market is very price sensitive. The CMSPs are inventing price models to attract all segments of cstomers. The CMSPs are o'ering activation and deposit waiver and free handsets to postpaid cstomers and free validity and talktime to prepaid cstomers. The CMSPs have a well woven network for retailing the mobile services throgh ( Company branded shops! distribtors! dealers! retailers and direct sales agents %)SA&. In India two systems for pricing telecom services were sed the *at rate and the measred rate. +nder the former! sbscriber has to pay a f,ed monthly rental irrespective of the nmber of calls made. In the latter! the sbscriber is charged a lower rental pls a sage charge per call. The Measred system of pricing still contines. The tari' of the calls was decided depending pon the time of origination of the call! day! distance! dration! more the nmber of calls made by the ser higher the tari'. The rental was decided on the basis of the capacity of telephone e,change from where the cstomer is served. The rental for the rral connections was low as compared to the rban areas. Diferent methods of Pricing The prices are based either on costs or demand. The cost-based price incldes a rate of retrn together with costs! i.e they focs on economic costs! which inclde a normal commercial retrn. In telecom! there are two types of demand! one for accessing the network and other for sage! these two elements is priced separately! and the impact of price on these two types of demand need be considered separately while deriving the price models. Innovations in pricing The innovations in pricing of mobile services are driven by CMSPs. They are o'ering the services in innovative price models! which are very attractive. These innovations have contribted in the redction of the cost of ownership and made mobile services more accessible for the low-income grop cstomers. The following innovative models for pricing new plans are adopted as compared to plain vanilla tari' models sed in the legacy system. a. .Incoming free for lifetime/ plans. In this plan the free incoming calls are allowed to the cstomers! if they recharge for a small amont every si, months. b. 0ne India tari' plan %1 rpee2min anywhere in India&. This plan is for cstomers making heavy sbscriber trnk dialing %ST)& calls. c. 0ne India 3oaming Plan. %1 rpee2min while roaming in India&. This plan is for cstomers sing the national roaming services fre"ently. d. The pre-paid cstomer can barter talk time mintes for e,tension of accont validity. e. The availability and a'ordability of the micro refll copons in varios denomination %e.g small refll of 3s.14 and validity e,tension ate the rate of 3s. 52-per day& f. 6ndling of mobile handsets with tari' plans! where the mobile handsets are o'ered free of charge. g. Attractive vale added services which are compatible with less sophisticated handsets e.g voice based SMS in place of the te,t based SMS and services on voice platforms for access to services on voice in place of the SMS. In recent times! the pricing has dropped down to almost 1 paisa2 sec. This had taken mobile to almost rock bottom prices. 7hen it was speclated that this was the abyss! 8irgin mobile came p with the plan of cash back on receiving calls. This is so far the lowest o'ering from any telecom company. 9owever! this o'ering cold not become so poplar. These days the focs of service providers for profts have shifted from call tari's to vale added services. There is a hge in*ow of di'erent kinds of service o'ering from service providers. :ven the technology boom in the mobiles have contribted to the shift of focs from mere call tari's to profts from vale added services. The mobile gaming indstry are contribting a lot to the profts of service providers. Advent of 5$ technology seems to be a promising ventre for service providers to reach new heights in revenes. 9owever! this will still take some time to penetrate this technology to