If I look two years back, a mobile user would never have imagined that two years down the line he could be talking to someone on an STD call at a tariff quite less than that of local calls ! This has happened and we all are witnessing it.
The competition in present Indian market has never been so intense as it is now, no matter if the operator is incumbent or a newbie, we can hear about the launch of new tariff plans, easy recharge vouchers, free minutes calling and more exclusive services almost on daily basis and still feel that a lot more is yet to come. It seems that one day an ideal mobile user will be confused about what plan to choose among the countless options available. Anyway that day seems to be near and we all are going to witness that but what our eyes are witnessing right now is the punchline “Why can’t your mobile operator count in seconds?”
Have you ever gone through this puchline? If ‘Yes’ then you would be reading about non other than TATA DOCOMO.
During its early launch, some conceptions were held that would TATA flourish with its GSM network or not? There are still so many GSM operators in India would TATA be able to make a mark among this huge set of competition? Yet it has proved its mark by achieving a milestone – 5 lakh subscribers in Tamil Nadu circle, barely a month after the launch of its service.
The launch of new tariff plans which captured every talking mouth and it’s 1p/sec or the launch of “Diet SMS”, wherein the company will levy charges only for the characters sent in the short message under the scheme Diet-SMS. Moreover its website is showing us how much we can save by getting per sec pulse scenario amazing!!! Also the launch of ‘Pay Per Call’ plan by TATA INDICOM thrived the telecom industry as the way by any CDMA operator has done, till now.
All this again resulted in the permanent setting of a per-second pulse and lesser tariffs by other GSM/CDMA operators too – AIRCEL & MTS. The recently released data of net telecom subscribers added in the month of August released by COAI, shows a steady decline in the count of new GSM subscribers. The experts says that it was quite expected – we can have a look at the number of new GSM subscribers being added month on month: 10.8 million (March 2009), 9.89 million (July 2009) and 9.74 million (August 2009).
The questions still arise: Whether these trends can pose a threat to upcoming Telecom operators who have yet to start their operations or in future time something else is to be seen! Whether is it about the total number of subscriber base or new subscribers added by an operator in August, AIRTEL is maintaining its position at no 1 spot. IDEA, AIRCEL & RELIANCE GSM have shown a steady growth in net % gain in comparison with previous month, with IDEA Cellular showing 0.03% gain, Aircel has 0.18% and Reliance GSM 0.02% gain all the way.
The dates for the 3G auction have been announced and Mobile Number Portability(MNP) declared to hit the country in December 2009, but the future talks / presumptions remain the same about MNP. “Will subscribers start jumping from existing incumbent operator to newbie’s giving more lucrative plans” and the mentioned point feels quite debatable, I have been asked many a times about my views on the same so I just want to share with all our esteemed reader of TELECOM TALK what my guess would be: the most use of MNP will be done amongst the youth segment and that too for getting group plans free/CUGs more low tariff’s, and mostly for those who calls to any one number particularly the most and want that they must pay the less they can.
Secondly MNP would be a thought for that person who is frustrated with his over-busy network during peak hours and daily ridicules the network, because of what use is a cellphone indeed if one cannot make an urgent call at his desired time. The same thought applies for a person who has to often roam out of his home network and he’ too once again becomes a victim of network not supporting him fully when in roaming or charges which are way too high!
Another factor affecting MNP will be “Word of mouth’” – yes and quite obviously there are very less people who read telecom articles & news. If one’s friend tells the other that he is getting N number of benefits in his or her plan given by this network and if plans are really affable this type of “Word of mouth” will generally influence an ideal customer to think about MNP. The fifth genre comes of ‘Operator loyal customers’ who are using a particular operator for years and don’t face network hazards often and are quite happy with the services, mostly this segment comprises of postpaid customers. This genre will be least prone to MNP. These were some of the scenarios related to MNP and there could be many had any one talked about the shifting of co-corporate connections in name of MNP if not than also give a thought.
So Operators hold your subscribers firmly, provide them with good network coverage, lucrative plans etc. because the only thing which was previously holding a dissatisfied subscriber was the retention of the same ’10digit mobile number’ and now he’s about to get the privilege of shifting to the rosiest garden available in the telecom sphere!
All Our TELECOM TALK reader are invited to share their views freely on the current Indian telecom scenarios ‘healthy & beneficial discussions Not just lame comments please share your valuable views.
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TUSHAR SHARMA October 12, 2009 at 1:35 pm
@ Anuj … and also for your info ….. Etisalat has crossed network technology from 3G to 3.5G ….to 3.75G !!!!
TUSHAR SHARMA October 12, 2009 at 1:22 pm
@ Anuj … thnks for updating 2 more countries from reference site … rather i quoted the above text on my own findings … and interactions pertaining to international telecom markets … as far as subscriber base is concerned its just a matter of population density where an operator is working … as China Telecom leads the chart when subscriber base is concerned to the markets operational ……still its never compared to as Airtel or Vodafone.
Dr.svsmani October 9, 2009 at 5:36 pm
I think BSNL and MTNL will be the first loser in mobile sector.The tough competition and the fall or merger of operators will be a problem for consumers also which is not a healthy competition in present situation.The telecom war is so aggressive that we may expect merger or fallout of several operators within a year.
Anuj October 4, 2009 at 3:23 pm
As well it is not mentioned anywhere that Etisalat is market leader in any of the country.
Anuj October 4, 2009 at 3:20 pm
Etisalat operates in 16 countries of Middle East, Africa & Asia with a total customer base of 85 million (far less than Airtel India).
Source: wikipedia
TUSHAR SHARMA October 4, 2009 at 2:43 pm
@ Kaushik …. your point is valid…… but the initial thing still remains the intense competition between the operators ………and some operators like Etisalat …can really make a difference as for your knowledge etisalat is operating in 14 countries …and in every country its no 1 operator as Airtel in India …..so we can’t exactly predict the market scenarios… but can see what happens !!!
kaushik October 4, 2009 at 1:21 pm
now there are around 10 operators in each circle and it will increase to 13-14 operators next year with launch of operators like STEL,VIDEOCON,ETISALAT,UNITECH.LOOP. But after say 4-5 years the operators numbers will be reduced to 6-7 operators as big operators will purchase small operators, for eg Airtel may purchase Etisalat or Videocon. This is obviously my opinion
nirmal mukhopadhyay September 28, 2009 at 10:25 am
Sir
I have a bsnl land phone and i made it ecs from january2005 [as am a handicapped person cannot move] but suddenly from 17th-september2009 my land phone disconnected
as i am a non-payer .I astonoshed how it is possible as i am in ECS—cannot know from which date my phone disconnected[17 going to phone telling only about disconnection] by phone to customer care came to know that my bank SBI -changed my account no on august 2005 and ECS not asked me to send new number
More astonishing is that from feb to september 2009 not paid my bill—but bill 3bill came writting ECS —and for a long time rent is now due–now i have to go to exchange for payment which is impossible and cash payment by paying through an unknown person as the amount is big
how shall i know if ecs payment is stopped or not i already sent a registrar letter to a/c 8-hare treet –but if by phone cannot understand if they accepted my new no—and if they send old no it wd be unpaid but i shall be in dark–until due date will over and update pass book from bank –but then again i shall be non-paid
I am requesting all customer dont anyone accept ECS -in billing for phone
MY phone no–033-2500-6060
E-Mail address [of mine] –mukherjeenormal@yahoo.com
Agnivo September 18, 2009 at 10:25 pm
What plan are you on? which circle?
TUSHAR SHARMA September 18, 2009 at 5:32 pm
@Deepak Kumar
Fresh thoughts by you Deepak …. Thanks for sharing your views…
Deepak Kumar September 18, 2009 at 3:19 pm
As rightly pointed out, they way Indian Telecom market is increasing so does the need to capture market share and so does the condition for what economist called “Perfect Competition”.
With decrease in the margin of voice call and increase of the new players in this domain, mobile operators are forced to offer plan which sounds really unheard off, with tata coming up with pay per call plan.
But at the end of the day its good for a consumer like me, who is getting benefit from the competition war among top players .
What I see as a future of this war would be a flat fee of say 500-600 Rs per month and you can make unlimited calls whether local or STD, and operator would be looking for think margin but large volume
After this I think game would be to give good customer service , good innovative VAS applications.
NMP would also put pressure on all the operators to start thinking of improving their service as to retain current subscribe base.
Deepak Kumar September 18, 2009 at 3:18 pm
As rightly pointed out, they way Indian Telecom market is increasing so does the need to capture market share and so does the condition for what economist called “Perfect Conditions”.
With decrease in the margin of voice call and increase of the new players in this domain, mobile operators are forced to offer plan which sounds really unheard off, with tata coming up with pay per call plan.
But at the end of the day its good for a consumer like me, who is getting benefit from the competition war among top players .
What I see as a future of this war would be a flat fee of say 500-600 Rs per month and you can make unlimited calls whether local or STD, and operator would be looking for think margin but large volume
After this I think game would be to give good customer service , good innovative VAS applications.
NMP would also put pressure on all the operators to start thinking of improving their service as to retain current subscribe base.
Mahmood Junaid September 18, 2009 at 11:42 am
using airtel for outgoing is a foolishness nowadays since for reducing calls we need to spend money what others are providing for free….
Shoeb September 18, 2009 at 10:48 am
What Tata has done is something very good, launching the per second pulse when Top service providers Airtel, Vodafone, are providing base tariff at 1Rs per min. Tata’s Initiative of per second pulse has brought the top service providers on their knees and forced them to think and think not for themselves but for the customers.
However There are other New providers like Aircel and hopefully we will see Unitech wireless, Etisalat DB, Loop soon.
Aircel has the tariff plan in Pune and Mumbai as 1-2-3 which gives calls at 30ps from 3rd min.
For a person like me who usually makes long calls Aircel is going to benifit me and not TataDOCOMO, but still i have got TataDOCOMO as secondary no. for one or two calls i make for less than a minute or two.
So people will go for tariffs as per their usage, and younger generations usually prefer the lowest tariffs.
RDB September 18, 2009 at 12:21 am
@Mahmood Junaid , @Anuj
Well with this 30p loc lifetime people talk much without caring for talktime ! when i took RGSM (loc 35p) and now MTS (30p) – my outgoing increased a lot ! almost twice ! and fact is now I do prefer calling to texting !
I am using Airtel as my 2ndary connction ,active since june 2007. no such reward so far
Anuj September 17, 2009 at 11:45 pm
Even Airtel is rewarding its old & loyal prepaid customers. I have airtel prepaid as secondary condition & sim is active from last somehow 6 years. It was general plan connection & later on I converted it to lifetime. Now company has reduced its local call rates to 60p/min without any extra charges. You can say it as a result of competition but its good to have cheap call rates with quality network operator.
Mahmood Junaid September 17, 2009 at 10:55 pm
@RDB
In kerala reliance gsm is providing local calls for 50p for life and std at 1re… also 750smses are free per day
Anuj September 17, 2009 at 10:33 pm
@RDB
I know that its beneficial for low end users but what I pointing out is its not beneficial for high end users. I have airtel postpaid connection with effective monthly rental 0Rs!(Same calling value i get free as what I pay rent) & call charges as 15p/min to any 3 local airtel nos.; flat 50p/min(local), 1Re/min(STD) + 100 local sms free/month..
My usages are quite high & call pattern is usually a long duration call. So 1p/sec is certainly not benefical to me & many other customers having calling pattern/usages like me..
RDB September 17, 2009 at 10:16 pm
@Anuj
buddy check it , at present most telcos offer lifetime @ local call rate Re1/min. but this per second pulse on Aircel/Docomo is a lifetime offer – wich is equivalent to 60p/min ! so on GSM platform loc call rate reduced for lifetime customers !
on cdma its diff pic, MTS LT pack @ 30p/min(KOLKATA CIRCLE), RCOMM CDMA 50p with Jaadu pack even Indicom is wth 600sec pulse !
u can’t deny this impact !
TUSHAR SHARMA September 17, 2009 at 8:09 pm
@Anuj
Thanks Anuj
Anuj September 17, 2009 at 4:16 pm
Great article. You summed up it very well.
My personal opinion about ‘per second pulse’ is that it wont make that much of sense in future. I strongly feel that its just a glimpse. It doesnt have mass appeal. For many heavy users including me, its not beneficial at all. So I think pulse should be 20second or 30 second & then call charges like 10p/20sec ‘ll make sense & appeal heavy users to some extent.
swati pandey September 17, 2009 at 3:31 pm
Gr8 work, it provide a clear view of what is currently going on in telecom industry
swati pandey September 17, 2009 at 3:30 pm
This is realy great work.
Akshat September 17, 2009 at 2:29 pm
g8t article…eagerly waiting for the next.
TUSHAR SHARMA September 17, 2009 at 2:02 pm
@RDB
Thanks RDB ….Hey i was having some of these in mind and will definitely jot them down in da coming time…today i was just talking about whats the talk of the present telecom momentum!!!!
RDB September 17, 2009 at 1:54 pm
good post Tushar, kudos !
Just note sum other points
1. Tata Tele’s touch to 2 extremities – on gsm its 1second pulse, on cdma its 10 min pulse !
2. Unitech’s televenture – what could they offer ? a free LT SIM to all Unitech flat owners? or local rate for calling to Pakistan(Telenor Pakistan) and Bangladesh(Grameenphone), just like MTS offering.
3., at the end of 2009, Videocon, Swan, Loop, Uninor will be on action. but see Indian market is getting contented as days go, what is the future of new telcos ?
4. – its 3G ! private telcos with 3G – means lower tariff on 3G, cheaper 3G handsets.
5. MNP – discussed above a lot !
6. MTS broadband/wireless data cards coming soon !
ashok September 17, 2009 at 1:51 pm
very well said
great work