Constant decreasing ARPU is not the single most concern of telecom operators in the country today. A plethora of issues including Customer loyalty/ churn management, VAS usage, technical issues relating to network density, going Rural and managing growth vs. sustaining profitability are on the priority lists of telecom managers.
A SIM card at almost zero cost today in the market is an easy picking for any economy conscious customer. More so the practice has paved an easy gateway for customers to own a second connection without losing the primary number for connectivity and avail the advantage of the best in market schemes. One of the debatable reasons for high churn ratios in urban market is growing network density leading to congestion issues and thus reliability of service providers' ability to provide basic connectivity in the cities itself.
Mobile VAS except messaging has taken a back seat, understandably due to value conscious customers again forming the major chunk of India's middle and bottom of pyramid. Again innovation has been minimal in driving mobile VAS revenues to expected forte.
On the whole, the industry is interestingly poised with a set of challenges probably for the first time after the Monopoly of Indian telecom opened up to form this Oligopoly of today's hand picked players playing the game of sustenance vs. growth.
Subscribe to:
Post Comments (Atom)
Indian telecom players already on high tariff platform, the trai guidelines hopefully the consumer firendly, but telecom players may sleep, they try to put some grad hidden charges which includes increasing Charges on SMS, or some gimmicks which many of consumers may not notice easily. Ram Indrakanti
ReplyDelete