Hutchison Max Telecom and BPL Mobile slashed SMS rates to 30 paise from the earlier Re 1, triggering a tariff war in Mumbai.

The third private GSM operator in Mumbai, Bharti Tele-Ventures, had announced a new tariff plan on December 10.

But like Bharti's offer, the two other operators said this benefit would only be available to post-paid subscribers.

The new tariff rates will be applicable from December 15.

Bharti had announced a steep reduction in SMS rates, from Re 1 per message to 40 paisa, along with a host of value-added features for post-paid customers in the western region.

Hutchison and BPL have also reduced the incoming roaming rates in the western region and some southern pockets to Rs 2.99 per minute from Rs 6.44 per minute.

Subscribers can also send 100 messages free at a monthly subscription of Rs 30.

"We needed to have a joint discussion with Hutchison Max and Idea to provide our subscribers with roaming services as all the players are not present in all the circles.

During the talks, the proposal to reduce SMS rates was also discussed," a senior BPL executive said. The new tariff plan was likely to increase the incoming roaming traffic substantially on the BPL network, he said.

At present, roaming contributes 10 per cent to BPL's overall revenue and the company is expecting it to go up to 15 per cent by the end of the year.