Tata Teleservices Ltd, India's first code division multiple access mobile service provider, is planning to launch its pre-paid services this September.

Initially the company will be launching pre-paid coupons and later it may unveil its subscriber identity module cards.

A pre-paid coupon will have a scratch card in which a password will be printed. A subscriber can activate his handset by typing in the password.

The company has also decided to adopt the fast-moving consumer goods sector model in marketing and sales of pre-paid coupons across the country. The distribution channel is expected to be in place by August.

It is learnt that in the initial months TTSL will be offering CDMA handsets with pre-paid connections as a package offer.

It is at present in discussions with at least two CDMA handset manufacturers for bulk buying of handsets.

Company officials declined to comment on TTSL's marketing strategy owing to 'professional reasons.'

"We will soft launch the pre-paid services across the country this September. In the initial stage we will be launching pre-paid coupons," said Jagrut Vyas, chief operating officer, TTSL.

Vyas said: "I understand people in India are not ready to spend money for buying CDMA handsets and the retail market for CDMA handsets has not grown properly. We may unveil a few package deals for our subscribers in the pre-paid segment."

According to Vyas, TTSL is at present working on its distribution channel which will be following the FMCG sector model.

"We will have distributors in all the major cities and the pre-paid coupons will be sold through a retail chain of sub-distributors. The pre-paid coupons will also be available in public places such as hospitals, bus terminus, railway stations and in major commercial areas in big cities," said Vyas. TTSL has already appointed distributors to sell the pre-paid coupons in Mumbai, Ahmedabad, Hyderabad and Delhi.

According to sources, the pre-paid coupons will be in the denominations of Rs 200, Rs 300 and Rs 500, besides coupons of Rs 1,000 for high-end users. TTSL, which has been operating in six circles since last December, has a subscriber base of 300,000.

Meanwhile, TTSL is planning to focus on fixed wire line telephone segment even as Reliance Infocomm is believed to be launching its fixed wireless telephone and FWLT services in August.

"The growth rate in FWT since our launch has remained thus far satisfactory. We have now decided to focus more on the high-end FWT users, while we will be stressing on developing FWLT subscribers in the next one year," Jagrut Vyas, chief operating officer, said on Friday.

TTSL, according to Vyas, has is seeing an average 50 per cent growth month-to-month in FWT but he admitted that the need of the hour was to readdress the FWLT segment.

"We are going to invest further in FWLT during the next few months and are also looking at capacity expansion. Unlike FWT, infrastructure for FWLT is bit expensive and to spread network properly across the circles where we are operating, is time taking too," he said.

In Gujarat alone, TTSL is planning to invest Rs 200 crore (Rs 2 billion) more during the next one year for infrastructure development and also for capacity expansion.

TTL is also working on the process of enhancing capacity of remote switching units by 100,000 more at the end of the year and planning to install more RSUs to accommodate new connections.

On the proposed launch of FWT and FWLT services by Reliance in August, Vyas said, "We are the first one in the country to launch code division multiple access services, including FWT, FWLT, and we have proved out competencies. We are not at all scared of another player entering in this segment, rather we will be happy with Reliance coming in because now the market will be further explored and penetrated."

TTSL, which has over 6,50,000 subscribers in the six circles, it has been operating, has more than 300,000 FWT subscribers, while FWLT accounts for a small share of the total subscriber base.

"FWT has many a advantages including crystal clear voice, easy movable from one place to another unlike FWLT or any basic telephone but thus far today's technology is concerned, it has some drawbacks also as FWT cannot be used for internet services. This vacuum will now be filled by us with more and more FWLT connections till we work out using Internet services for FWT subscribers also," Vyas said.

TTSL, which has a waiting list in at least two of its six circles, including Gujarat, because of the unavailability of LG instruments for FWT, claims to have sorted out the problem.

"Now there is no waiting list for FWT connections as we have got a new lot of imported LG handsets with unique features and SMS capability. In fact, we are now working out to provide more value-added services to our FWT and FWLT subscribers and SMS services are going to be launched commercially from this August," the COO said.