Retailers Stop Aircel, Airtel & Vodafone Recharges in Tamilnadu

Retailers Stop Aircel, Airtel & Vodafone Recharges in TamilnaduFollowing operators decision to cut down retailers margin on e-recharges and paper recharges, all retailers in Tamilnadu are on protest by boycotting recharging any mobile of Aircel, Airtel and Vodafone.

The protest was started by retailers in Trichy and later it spread throughout the state excluding Coimbatore and Chennai. As a result for last couple of days no recharge is done in Tamilnadu telecom circles on Aircel,Airtel and Vodafone mobiles.

We also had a chance to speak with one of the retailer who cited that during initial days retailers margin was 7% and as time passed operators started cutting down the margin from 6%,4% and now they have bring it down to 3% which made them to go on a indefinite strike.

There is no news of withdrawal of this boycott any time soon.It should be noted that India is a pre-dominant prepaid market for mobile sector.

Though authorized stores of respective operators are providing recharge to their prepaid customers.If you are running out of balance, better you choose online recharge options or take a visit to Aircel Stores, Airtel Relationship Centers or Vodafone Stores.

So whats your take on this issue do let us know via comments ?

This Article Was Written By: Tarun

Tarun - Founder & Chief Editor

A Happy Geek and a Network Research Engineer with a really cool day job…

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  • kawaljit singh February 19, 2014 1:25 am, 1:25 AM

    I am not satisfied with the decisions of all these companies as they should give us at least 8% of retail margine . retailor is the main chain for the rise of company business .they should think about us .I am with you all peoples of retail channel partners

    Reply
  • binod October 14, 2011 1:16 pm, 1:16 PM

    Telecom company did not cut thier marjin but they are not willing to give marjin to retailers .Nor they reverse our wrong transaction .Telecom com are very greedy they activate any unmeaning service to customers and deduct the balance .I am with u all the peoples

    Reply
  • Jagadesh July 20, 2011 9:38 am, 9:38 AM

    Videocon Offers upto 7.3 % for retailers for the Month of July

    Reply
  • Sujatha July 19, 2011 12:49 pm, 12:49 PM

    JD :Any business goes through transition as it approaches maturity from nascency. Please understand that few years back, the telecom industry was aimed at expansion and gaining subscribers for which heavy CAPEX was laid out and Trade Margins were suitably higher. Today the industry has reached a stage of saturation towards Acquisitions. Therefore no longer time and money spent on increasing width. Retailers must start focussing on increasing their depth of business.
    Top businesses cut down areas of distributers to ensure that their depth of business is generated. Telecom needs to get out of retailer driven monopoly.This is not a new impact and we must understand that every business cannot be always in the social space.
    Regarding the ROI of retailers, then telecom outlets don’t survive on the commission that the operator gives them. Yes there is a flip side that retailers will start pushing subscribers into churn without selling recharges. But then that is where operators will have to create offers which are pull based forcing the Trade to sell recharges.

    well said

    Reply
  • JD July 19, 2011 11:02 am, 11:02 AM

    Any business goes through transition as it approaches maturity from nascency. Please understand that few years back, the telecom industry was aimed at expansion and gaining subscribers for which heavy CAPEX was laid out and Trade Margins were suitably higher. Today the industry has reached a stage of saturation towards Acquisitions. Therefore no longer time and money spent on increasing width. Retailers must start focussing on increasing their depth of business.

    Top businesses cut down areas of distributers to ensure that their depth of business is generated. Telecom needs to get out of retailer driven monopoly.
    This is not a new impact and we must understand that every business cannot be always in the social space.

    Regarding the ROI of retailers, then telecom outlets don’t survive on the commission that the operator gives them. Yes there is a flip side that retailers will start pushing subscribers into churn without selling recharges. But then that is where operators will have to create offers which are pull based forcing the Trade to sell recharges.

    Reply
  • Tanshu July 6, 2011 4:48 pm, 4:48 PM

    Retailers are doing rt thing. telecos are paying thousand of crores to Ministers , but they are not paying margins to them who helps them to join customer base. However, even in Pune, initially retailers are working on 5% margin but now its comes to 2.3% . In the current scenario of inflation, A telecom retailer is not able to sustain coz he is not earning that much of amount. A retailer whos earning was 500 of selling of Rs10000/- Easy recharge now comes down to 230… That means directly 270/- is down. On the contrary they are not paying amount on prepaid sim also.A telecom retailer is also having his family.. If this will continue then , on One day NO will Intresetd in Telecom business.

    Even , Rt now most of distributers are not ready to invest in Teleocom business just because of this companies. Telecos should take care of this issue.

    Reply
  • Shinoj July 1, 2011 10:18 pm, 10:18 PM

    but boss these operators especially Airtel are snatching the money from the customers. the customer does not get the value he should get for his recharge. 39 for 50 rupees recharge is not good Mr. Airtel.

    Reply
  • Shinoj July 1, 2011 10:17 pm, 10:17 PM

    PD :
    @Shinoj
    Well put it, with much more clarity.
    Vodafone (I can vouch for Mumbai) is much more soft-corned in doling out promotional incentive schemes to its retailers.

    may be. but boss these operators especially Airtel are snatching the money from the customers. the customer does not get the value he should get for his recharge. 39 for 50 rupees recharge is not good Mr. Airtel.

    Reply
  • max June 30, 2011 2:59 pm, 2:59 PM

    @shweta
    these operators reserved their right to withdraw the scheme from market at any time. and they are doing the business as per the agreement done with retailer.

    Reply
  • s.a.salim June 30, 2011 1:17 pm, 1:17 PM

    they are not fighting for own rights, its for customer also company making full talk time if we put they suddenly decrease our amount. company steeling amount.
    they want give proper commission for retailer and proper service for customer.

    Reply
  • shweta June 30, 2011 9:49 am, 9:49 AM

    wats the harm…..???

    they r fighting for their own rights…

    they r on the right track…Boss, this is India….!!!

    no one is gonna listen to u unless u bang on their head….their is no surprises or Chamatkaar’s…u’ve to fight for ur own self…..

    I am also an Indian…n i can understand the pain that they r going through…its really a tough job to keep ur shop open in all the weather and cliamtic conditions, n serving ur customers with the best possible way and smile…for these bits n pieces…

    Govt should intervene…

    an ordinary man is paying a huge amount of tax to Govt…n still he’s not being provided with the basic needs, such as electricity, water, food….

    and the prices r rising on the most frequent basis….

    its just like hell…

    wat will the next generation have to survive…..???

    if this trend will continue in the future, then its no surprise, that working professionals in MNCs would have to lay down on footpath at the end of the day…as owning a house has just became only a DREAM….

    a dream that will alwez remain a dream…

    everyone should come forward…to show the probs of ordinary people of India…there’s no harm….

    if our politicians can deposit in lacs, crores in Swiss, y cant our govt do a bit for the basic needs of citizens of India….???

    Reply
  • selvam June 29, 2011 9:00 pm, 9:00 PM

    @naveen no naveen even they are not worried abt the feelings of their own MASTERS who make and influence the customers to select the service providers..is it logic will u allow..think other wise even these cos not worrying abt the retailers who are the backbone of their business wat abt the customers of that cos..think ethicaly

    Reply
  • selvam June 29, 2011 8:56 pm, 8:56 PM

    @max they are striking or not..but the pain is true..they are the persons worked like real horses for the betterment of the companies that too for PVT operators like AT,VODA,AND AIRCEL..NOW they are not even cared abt their feelings..that is not correct isn’t…wat can’t do these companies to their customers in future..

    Reply
  • PD June 29, 2011 5:38 pm, 5:38 PM

    selvam :
    yes, in chennai the retailers are also going on strike on 30th june… if the costs are going high in all aspects but the commission going less who can do business in city like chennai ..are the companies are genuine in business wrong VAS and deductions for that also retailers to suffer..the companies only known by the retailers but now the cos are forgetting the retailers’ efforts..this is the method of the corporates’ attitude towards the well wishers and the retailers,,ALSO retailers not doing below 30rs EC since only they are gtg 29ps for RS10..best of LUCK to the retailers

    U said it.

    Reply
  • naveen June 29, 2011 1:41 pm, 1:41 PM

    @max
    You cant ask GOVT to intervene, it is upto you if you want to sell or not. If you are not satisfied with the margins stop selling. DOES ANYONE COMPLAIN THAT OPERATORS HAVE REDUCED CALLING CHARGES… NO ONE NA………………..

    Reply
  • ss June 29, 2011 1:19 pm, 1:19 PM

    for nokia pd dealer they are giving extra margin

    Reply
  • max June 29, 2011 11:45 am, 11:45 AM

    govt need to interven here and after discussing they need to finalise policy on this business margin of every level and call rate structure. as currently competation is going to next level, we are finding drop in call rates but once it saturated we may find call rates hike. so govt need to finalise their policy before happening this.

    Reply
  • max June 29, 2011 11:40 am, 11:40 AM

    Tarun :

    selvam :
    yes, in chennai the retailers are also going on strike on 30th june… if the costs are going high in all aspects but the commission going less who can do business in city like chennai ..are the companies are genuine in business wrong VAS and deductions for that also retailers to suffer..the companies only known by the retailers but now the cos are forgetting the retailers’ efforts..this is the method of the corporates’ attitude towards the well wishers and the retailers,,ALSO retailers not doing below 30rs EC since only they are gtg 29ps for RS10..best of LUCK to the retailers

    are u sure they are going to ??

    i am sure they cant

    Reply
  • max June 29, 2011 11:36 am, 11:36 AM

    @Shinoj
    its not the 1st time happening in any market, to setup their business these companis offering high margin and then they slowly reduced it to low level. its totally depend on demand, if demand is huge margin will be less and demand is less margin will good. as i said earlier telecom market getting saturated now ARPU (average revenu per unit) decreasing day by day, and withing few months will find that all incomming will free in roaming too. i mean to say it is very difficult to survive in market for telecom operators (specially new entrance). these new operator network still not covering the complete area, probabally they will tie up with another opearator within a circle to cover the complete area ( like 3g they are mutually tie up with another operator in some circles).

    Reply
  • teletalk June 29, 2011 11:24 am, 11:24 AM

    yes,,,,,,,,,,we are already on strike since 5 months in Gujarat against airtel idea and vodafone retailer margin is 2% only

    Reply
  • rajiev June 29, 2011 7:27 am, 7:27 AM

    selvam :
    yes, in chennai the retailers are also going on strike on 30th june… if the costs are going high in all aspects but the commission going less who can do business in city like chennai ..are the companies are genuine in business wrong VAS and deductions for that also retailers to suffer..the companies only known by the retailers but now the cos are forgetting the retailers’ efforts..this is the method of the corporates’ attitude towards the well wishers and the retailers,,ALSO retailers not doing below 30rs EC since only they are gtg 29ps for RS10..best of LUCK to the retailers

    best of luck!

    Reply
  • dinesh June 29, 2011 6:47 am, 6:47 AM

    3percent commission is what we retailors get in karnataka for many years.bsnl recently reduced it to 2.7.in my opinion it is ok otherwise everyone will be in the er buisiness bringing the profit down even if commission is 10 percent.3percent commission is what we retailors get in karnataka for many years.bsnl recently reduced it to 2.7.in my opinion it is ok otherwise everyone will be in the er buisiness bringing the profit down even if commission is 10 percent.

    Reply
  • Tarun June 28, 2011 11:29 pm, 11:29 PM

    selvam :

    yes, in chennai the retailers are also going on strike on 30th june… if the costs are going high in all aspects but the commission going less who can do business in city like chennai ..are the companies are genuine in business wrong VAS and deductions for that also retailers to suffer..the companies only known by the retailers but now the cos are forgetting the retailers’ efforts..this is the method of the corporates’ attitude towards the well wishers and the retailers,,ALSO retailers not doing below 30rs EC since only they are gtg 29ps for RS10..best of LUCK to the retailers

    are u sure they are going to ??

    Reply
  • selvam June 28, 2011 11:23 pm, 11:23 PM

    yes, in chennai the retailers are also going on strike on 30th june… if the costs are going high in all aspects but the commission going less who can do business in city like chennai ..are the companies are genuine in business wrong VAS and deductions for that also retailers to suffer..the companies only known by the retailers but now the cos are forgetting the retailers’ efforts..this is the method of the corporates’ attitude towards the well wishers and the retailers,,ALSO retailers not doing below 30rs EC since only they are gtg 29ps for RS10..best of LUCK to the retailers

    Reply
  • Amit.G June 28, 2011 10:53 pm, 10:53 PM

    @Jagan
    Good news today itself Information n communication ministry official has told that govt will allow spectrum sharing between operators inorder to over come poor service quality. And upon that NSN’s DFR technology will increase capacity by 100% more with existing bandwidth. so future is clear for endusers interms of qos!! @Jagan
    Good news today itself Information n communication ministry official has told that govt will allow spectrum sharing between operators inorder to over come poor service quality. And upon that NSN’s DFR technology will increase capacity by 100% more with existing bandwidth. so future is clear for endusers interms of qos!!

    Reply
  • Amit.G June 28, 2011 10:48 pm, 10:48 PM

    @Ajay
    just go through the financial reports of Airtel/ idea. u will notice that revenue growth is very less from past 2 years where as look at the number of subscribers and towers added. It costs 200-300rs to acquire 1 customer for an operator and costs 15+lakhs for one shared tower and 70000rs/month for its maintainance. so if revenue grows at the same rate like tat of opex then it wont hurt the business. but now the entire scenerio is different so operators are forced to reduce margins and other methods.

    Reply
  • Amit.G June 28, 2011 10:42 pm, 10:42 PM

    @ Ajay
    Telecom is such a industry where a operator wipes out frm market if it doesn invest in infrastructure. Wat u think they just put upa tower n sit quite?? do u know the cost of switch? it needs to be replaced/upgraded as subscriber base increases. cost of switch is near to crores. and wat about salary to employees who ask for yearly hike??wat abt paying spectrm usage fee? if that was the case then y vodafone tis year made profit for the fisrst time in india? Telecom is not simple like hw u ppl think.

    Reply
  • Jagan June 28, 2011 10:26 pm, 10:26 PM

    You could expect this and even more from Airtel & Vodafone.

    BSNL has already reduced its retailer-margin, and as a result here its hard to find a retailer with BSNL coupons or e-recharges.

    Now, with Govt’s new telecom policies and price-hike, the TelCo’s have too high expenditure and comparatively lower incomes. For almost all TelCo’s the profit they got in the 2010-11 fiscal was much below that was expected and a similar may be seen in the current fiscal too. So they will definitely have to reduce their expenditure and at the same time increase income.
    Few days back we saw Bharti taking major steps to cut down their expenditure.
    We also saw major changes from BSNL’s part few weeks back like having a “Customer-delight” month and Rationalizing of Plans along with launch of 2 market-catching packs.

    Here, from customers’ and retailers’ part nothing much can be done. It is govt to act.
    Govt should reduce the spectrum fee and other fees imposed on TelCo’s. I think it should be based on the customer-base that a network has(it will also reduce the number of inactive customers being showed down in the customer-base).
    I feel Govt is considering TelCo’s as a Golden-egg laying hen.

    Reply
  • PD June 28, 2011 10:15 pm, 10:15 PM

    Jagan :

    Ajjay :
    As it is Vodafone & Airtel have almost recovered their infrastructure cost
    Now what they are collecting is all profit, the only expenditure thay have to incur is the operating cost
    I dont understand the logic of reducing the retailers margin? Is is a definite and well thought strategy? or a suicide?
    You may have other channels for distribution, but cant kill retail channel,
    many have tried but they themselves are out of the market now

    @Ajjay
    Did you forget about the 3G infrastructure???
    Doesn’t it need investment????

    Understandable, would it be appropriate – at the cost of retailers…?

    Reply
  • PD June 28, 2011 10:12 pm, 10:12 PM

    @Shinoj

    Well put it, with much more clarity.

    Vodafone (I can vouch for Mumbai) is much more soft-corned in doling out promotional incentive schemes to its retailers.

    Reply
  • imahesh June 28, 2011 10:01 pm, 10:01 PM

    simple change your operator to other.

    Reply
  • Jagan June 28, 2011 9:57 pm, 9:57 PM

    Ajjay :
    As it is Vodafone & Airtel have almost recovered their infrastructure cost
    Now what they are collecting is all profit, the only expenditure thay have to incur is the operating cost
    I dont understand the logic of reducing the retailers margin? Is is a definite and well thought strategy? or a suicide?
    You may have other channels for distribution, but cant kill retail channel,
    many have tried but they themselves are out of the market now

    @Ajjay

    Did you forget about the 3G infrastructure???
    Doesn’t it need investment????

    Reply
  • Shinoj June 28, 2011 9:52 pm, 9:52 PM

    I fully support the strike. What PD has said is right. Operators should work-out a plan that suits the retailers too. Recharging with retailers is very easy as they can be found in nook and corner. Even we can use them during emergency. Thinking online recharge may be right for top layer or upper middle class people. These operators are thinking to take home all the profit they earn. And this is absurd. Operators must understand they cannot survive without retailers who are the very basic for their operation. Do these operators have the guts to open such many retailing chain of their own? I can tell no operator has such guts. So its better for the operator to get down from their position and work with the people rather than always thinking on business basis. @PD

    Reply
  • Kaushik Roy June 28, 2011 8:31 pm, 8:31 PM

    Inspite of these we may find Aircel,Airtel and Vodafone added highest number of subscribers for the month of June ;)

    Reply
  • Ajjay June 28, 2011 8:19 pm, 8:19 PM

    As it is Vodafone & Airtel have almost recovered their infrastructure cost
    Now what they are collecting is all profit, the only expenditure thay have to incur is the operating cost

    I dont understand the logic of reducing the retailers margin? Is is a definite and well thought strategy? or a suicide?

    You may have other channels for distribution, but cant kill retail channel,
    many have tried but they themselves are out of the market now

    Reply
  • PD June 28, 2011 6:28 pm, 6:28 PM

    mememe :
    We should embrace technology and completely shift to online recharges. Another option could be via mobile banking through SMS.

    Your suggestion is good. But not practical because mobile density in India is 69.19% (according to census 2011) of the total population. A vast majority of them, especially of lower middle class and those come under BPL (below poverty )go for recharging of Rs.50 and even less at a time. Can these lot afford to make use of the online recharging ? Even ATM facility is beyond their reach. Those who work on daily wage basis go for a recharge on daily basis (Rs.10/-). Therefore no operator can write off distributor-retailer chain. Well better prudence…..

    @max U said it…!

    Reply
  • max June 28, 2011 5:27 pm, 5:27 PM

    @Deepak Rai
    whatever, but ppl doing recharge on daily basis and purchasing phone once in a two years

    Reply
  • mememe June 28, 2011 4:35 pm, 4:35 PM

    We should embrace technology and completely shift to online recharges. Another option could be via mobile banking through SMS.

    Reply
  • Deepak Rai June 28, 2011 3:56 pm, 3:56 PM

    max :
    day by day telecom market getting saturated and due to this we will find that operator will reduced retailer commission after the successful launch of mobile money.

    What is the price of average nokia phone and average recharge??

    Reply
  • max June 28, 2011 3:44 pm, 3:44 PM

    day by day telecom market getting saturated and due to this we will find that operator will reduced retailer commission after the successful launch of mobile money.

    Reply
  • PD June 28, 2011 3:42 pm, 3:42 PM

    max :

    ss :for 1 lakh they will get Rs. 3000what is the use of putting manpower


    3% still a high margin in distribution, nokia only offer 1% to their retailer with 3 days post dated cheques for good retailer. and for b2b they are doing it on cash or current dated cheques

    A good reason FOR – NOT TO BE UNHAPPY..!

    Reply
  • vinay blr June 28, 2011 3:37 pm, 3:37 PM

    hi guys,

    i have heard that AIRTEL does not offer service in tamilnadu.

    Reply
  • max June 28, 2011 3:36 pm, 3:36 PM

    dont forget that the retailer is not exclusive in telecom business, he is doing recharge for all the available operator, means if 6 operator there then he will earn 6*3000=18000, plus sim card, data card n all.

    Reply
  • PD June 28, 2011 3:30 pm, 3:30 PM

    rajiev :
    what will do customer now! is there any options for them!

    In fact these operators go on reducing the commissions because if subscribers start recharging thru ATMs, and other ALL-in-one outlets (Oxygen, mobileseva, online recharging sites, etc.etc.) – other than thru retailers – they have to pay out less in commission. However, THEY do not FORGET that sims can be sold only thru retailers and/or thru their respective galleries. Therefore all the operators offer maximum on FRs (first recharge). The retailers fully aware of this deceit !

    Reply
  • max June 28, 2011 3:28 pm, 3:28 PM

    ss :for 1 lakh they will get rs.3000what is the use of putting manpower


    3% still a high margin in distribution, nokia only offer 1% to their retailer with 3 days post dated cheques for good retailer. and for b2b they are doing it on cash or current dated cheques

    Reply
  • santanu June 28, 2011 2:15 pm, 2:15 PM

    it’s gr8. All retailrs throughout kolkata and west bengal should also unit like this against the wrong decession of the companies.

    Reply
  • Sandeep June 28, 2011 1:01 pm, 1:01 PM

    Airtel & Voda should start view stall for recharge in major roads. Till the strike is on

    Reply
  • Rahul K June 28, 2011 12:45 pm, 12:45 PM

    Now a days users can recharge online, throgh bank ATMs & bank kiosks. If the retailers go on strike for long time. Users will start recharging throgh the above channels & will forget the retailers. This will definately affects only & only to retailers.

    Reply
  • rajiev June 28, 2011 12:16 pm, 12:16 PM

    what will do customer now! is there any options for them!

    Reply
  • PD June 28, 2011 11:41 am, 11:41 AM

    sukhen :
    @Kaushik Roy
    BSNL gives 5.5% Commission. GO for BSNL.

    The commission varies from circle to circle and operator to operator, except for TAX…!

    Reply
  • krishna June 28, 2011 11:26 am, 11:26 AM

    @Kaushik Roy
    Franchisees commision is 5.5 % and retailer commision depends on franchisees 70% to 80%

    Reply
  • ss June 28, 2011 11:23 am, 11:23 AM

    for 1 lakh they will get rs.3000
    what is the use of putting manpower

    Reply
  • Tarun Acharya June 28, 2011 11:02 am, 11:02 AM

    amit g is a great tech geek.keep on amit g.

    Reply
  • ss June 28, 2011 10:57 am, 10:57 AM

    if 100000 sales only 3000 basic salary to salesman rs.2500
    only rs.500.
    they have to depend extra otf

    Reply
  • sAm June 28, 2011 10:55 am, 10:55 AM

    @Amit.G

    Guys,wat do u thnk?? cmpnies r mkng losses in d telcom sectr !! yes,itz tru bharti is mkng losses but does dat mean itz mkng losses with bharti airtel.????

    Reply
  • sAm June 28, 2011 10:51 am, 10:51 AM

    @RDB

    Agreed

    Reply
  • Jagan June 28, 2011 10:47 am, 10:47 AM

    Retail sales of recharge coupons was profitable a long back. Now a days many shops discarded the sales of recharge coupons. Some of them using only e-recharges and paper coupons with minimum of Rs. 30 or Rs 50 and they shows no more interest in this business. Increasing Rent, EB, manpower shortage makes this business tough. With reduced margins how they survive? IMHO telcos should increase the call charges onnet for 50ps and offnet for 80-100ps – ONLY TO PROVIDE BETTER INFRA AND SERVICES.

    Reply
  • ss June 28, 2011 10:41 am, 10:41 AM

    no retailers came when amt deducted from the customers
    now rs.5 per 1000 has been reduced to them
    now they are not seeling

    Reply
  • Ankit June 28, 2011 10:26 am, 10:26 AM

    I think majority of the customers still rely on this distribution channel, given the cut in margins and increase in their operational cost the retailer and distributors are certainly feeling the heat. The customer is surely put to inconvenience, the company and the retailers should work out a amicable solution soon. As with lower volume of recharge the companies are loosing anyways. Online option is available for a customer but only for a minority of them. So in interest of all the stalemate should be resolved soon.

    Reply
  • sukhen June 28, 2011 10:16 am, 10:16 AM

    @Kaushik Roy

    BSNL gives 5.5% Commission. GO for BSNL.

    Reply
  • rajiev June 28, 2011 8:58 am, 8:58 AM

    very good decision by retailers.

    Reply
  • Uday Kiran K June 28, 2011 8:54 am, 8:54 AM

    One of the best operator in tamilnadu is TATADOCOMO.There service is good and they developing there network very fast over all DOCOMO IS good

    Reply
  • Manivas June 28, 2011 8:24 am, 8:24 AM

    Can anyone explain what inter-connect charges mean ??

    Reply
  • Magnet June 28, 2011 8:20 am, 8:20 AM

    To those are supporting these operators, are you happy with the talk time they giving now? For Rs.50 top up we can get Rs.38 only, for Rs.20 top up rs.13 only . Are you happy with that?

    Reply
  • Anbu John Boban June 28, 2011 6:42 am, 6:42 AM

    The retailers are blaming the private operators and plus govt operated bsnl for a long time. In terms of commission from the bsnl the distributor should shell out his own money to make it profitable. The distributors are not interested to provide retailers the bsnl e-recharge. When it comes to the Airtel,Aircel,Vodafone the reason is the commission in case of retailers as they get only 3% commission ! Even if the stationary shop vendor gets 5 rupees as profit when he sells for 50 rupees . while as a retailer gets only Re1.50paise. Previously the 10 rupees e-recharge are legend and now a days the retailers are not interested. If u or me want to recharge should do a minimum of Rs.30. The Airtel 10 rupees top up card is hardly seen in coimbatore plus the vodafones 10s. But the Aircel 10s 20s are available in stores.

    Reply
  • T June 28, 2011 12:37 am, 12:37 AM

    So i guess its no sleep nights for freecharge. in and paytm. com :-) :-)

    Reply
  • Amit.G June 28, 2011 12:32 am, 12:32 AM

    @RDB
    It would never happen like that. New operators started ter operations from 2009. But we already had a tariff of 50p/min right from 2007. TRAI has played a major role in reduction of tariff and monitoring. When telecom boom started past 2002- 03 wher many people started buying mobile phones operators changed tier strategy to high volume low price, tariffs begin to come down from 10rs per min to 1re/m and slowly incoming charge was removed. BSNL made a revolution at that time wit zero rental plans and extra talkvalue no recharges above 500, this forced private operators to wive off daily rental.

    Reply
  • Raghu June 28, 2011 12:14 am, 12:14 AM

    @Amit.G
    yes it will take more time for Uninor to become an operator with seamless coverage

    Reply
  • Raghu June 28, 2011 12:13 am, 12:13 AM

    @Amit.G
    yes it will take more time for Uninor to become an operator with seamless coverag

    Reply
  • Jaibeer June 28, 2011 12:05 am, 12:05 AM

    Good

    Reply
  • PD June 27, 2011 11:59 pm, 11:59 PM

    It is retailers’ Woes and not “wows” !

    Reply
  • PD June 27, 2011 11:50 pm, 11:50 PM

    Special thanks for TT and Tarun for bring to the forefront the vows of retailers who serve as a link in the telecom sector! The situation in Mumbaiis still worse ! Retailers get only 2.5% from all the private operators except MTNL (4%) and BSNL (3%). Therefore hardly any retailer take much interest in the business. Most of the lot prefer physical coupons for E-recharges because this involves still more efforts and risks. Also the tariff plans are so complicated/confusing with special and/or specific offers to identified individual subscribers. In the end this leads to to wrangling with the customers. Further the operators does not reverse (refund) any wrong recharge made for value less than Rs.100/-. Thus a loss of Rs.100 means burning the commission for the sales of Rs.4,000/- These are the main reason that many of them avoid selling new SIMS. Needless to mention the risk of mapping the number against the retailer permanently which make them answerable for deeds and misdeeds of the mapped subscribers ! However mention needs to be made that the operators give concessional on-net and/or off-net calling/SMS facilities An in this count VODAFONE scores….! In Mumbai Vodafone beats all others for this reason !

    Coming to the main points of resorting to “not selling of recharges”, few years back this was tried in Mumbai circle but fallen flat because of few “black sheep” among the lot.

    Reply
  • Anand Isaac June 27, 2011 11:50 pm, 11:50 PM

    Everyone wants more money. Simple as that. Retailers must teach a lesson to the cartel so that they don’t do nasty things like this.

    Reply
  • RDB June 27, 2011 11:41 pm, 11:41 PM

    There is an axis of EVIL – A cartel of Airtel, Idea and Vodafone. If Reliance Infocomm in 2005 and new players specially Tata Docomo, MTS and Uninor did not hit it, the tariff would be Rs10/minute. And mobile would be a piece of luxury.

    Same is doing with 3G, every operators tariff is more or less same.

    Reply
  • Amit.G June 27, 2011 11:32 pm, 11:32 PM

    @Raghu
    It depends buddy. Still experts say that new players won stand for long time. It takes 1 year to recover the costs of acquiring a customer but no customer will be a new operator for more than 6 to 8 months. Upon that interconnect charges are high. At present operator gets 5p per minute for every offnet cal made including cost per minute. So ideal pricing is 40p per minute and regarding on net it can be 10p also. uninor is struggling to launch in new circles and increase the tower size in existing circles. No matter it won quit but it wont become preferred operator until it boasts with seamless coverage. @Raghu

    Reply
  • Anwar Kacchi June 27, 2011 11:14 pm, 11:14 PM

    here in maharashtra retailor margin is 2.3 %

    Reply
  • Kaushik Roy June 27, 2011 11:14 pm, 11:14 PM

    what is BSNL commission rate in TN ?

    Reply
  • Raghu June 27, 2011 11:14 pm, 11:14 PM

    @Amit.G
    yes let us hope this problem will get solved soon

    Reply
  • Raghu June 27, 2011 11:10 pm, 11:10 PM

    @Amit.G
    do u think Uninor will also be out of the market? It is better the call rates be 30p/min .what should be the on-net call charges be?

    Reply
  • Amit.G June 27, 2011 11:04 pm, 11:04 PM

    Only solution to this would be govt should frame good policies, spectrum should not be priced @ 10000crores as suggested by TRAI. operators must switch to green towers gradually n then call rate should be @40p/m(offnet). this will maintain a healthy returns to both users n service providers. If new operatos like VIDEOCON, CHEERS, LOOP n possibly uninor exit indian telecom sector the again operators will recover from this wound!! but since docomo will be present we will see healthy compitetion not monopoly!!

    Reply
  • Amit.G June 27, 2011 10:56 pm, 10:56 PM

    We cannot blame operators nor retailers!! Now as we know tariffs have hit so low that every operator is struggling to make profits, This time even Airtel dipped in profits which forced the management to restructure its operations which will lead to sacking 2000 jobs in airtel, companies are searching ways to minimize costs!! comin to retailers, now we can feel the heat of inflation with prices of FMCG&food items reaching high, so even they need to survive n will expect more returns to cater the infltn. Wevive n will expect more returns to cater the infltn. We

    Reply

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