GSM operators are evaluating the option of offering an upfront payment tariff structure similar to that offered by the wireless in local loop operators.

This comes at a time when the cellular industry is awaiting the Telecom Regulatory Authority of India's verdict on fair interconnect usage charge on a cost-based regime.

The GSM service providers expect to offer this tariff package only after a few months after studying "the response to similar package offered by WLL operators."

Reliance Infocomm launched its WLL services with a tariff rate having an upfront payment of Rs 21,000 or Rs 3,600 with post dated cheques for rentals of Rs 600 per month for 36 months.

Confirming that "the upfront payment" was being considered by the GSM operators, a cellular operator said: "We are thinking of a counter plan for our tariff structure. But no conclusive decision has been taken as we are waiting for Trai's verdict on interconnect usage charge. Once the rules are set, we will re-evaluate our tariff plans."

In fact, the cellular operators have recently pointed out that they were in a position to match, even better WLL tariffs, if their request for identical license conditions and terms regarding entry fee, interconnection and other issues were sorted out.

Analysts say that there will be only a few takers for the upfront payment scheme offered by GSM operators.

"I doubt any customer would like to tie down to a single operator for two-three years in this fluid market. Even though it may be targetted at the post-paid customers, the scheme might just flop as the customers may move over to pre-paid cards or flock to other technology driven operator who might offer a cheaper tariff plan," analysts said.

Another GSM operator insisted, "it is just an option which we are studying. Aircel in Tamil Nadu earlier offered a similar scheme and gained about 3-4 per cent of the market."