Till date voice is primary point to earn revenue for the mobile operators, but the movement towards data has already been started. The change in users’ behavior results in reshaping of traditional voice market in India. People find other way of communications apart from simple voice calls.
Tariff Hike – and Associated Changes
Following the new players exit pushed by Supreme Court’s verdict in February 2012, almost all mobile operators hiked their tariff -directly or indirectly. Those hiked the base tariff have to offer ratecutters to reduce the low call rate, but these ratecutters are no more cheap business. Sometimes benefits are reduced or validity is reduced.
Unlimited Voice Packs
I am not talking about minutes or second packs, rather on the unlimited voice and text plans offered by some operators. These schemes or recharages are similar of carriers offer in Europe or USA. Idea’s buffet packs, unlimited packs from Tata Docomo and Reliance are serious attempt to lure heavy voice customers.
Alternative to Voice
India’s young generation believes communication is not limited to voice calls. Voice is getting replaced by Skype, Viper, Nimbuzz, Blackberry Voice and so many VoIP. Even P2P messages are replaced by Fb Message or WhatsApp. Revenue of voice is shifting to data.
CDMA to GSM Shift
On CDMA ARPU is less than GSM ARPU. And following MNP introduced, there is clear migration from CDMA to GSM. It is good for CDMA operators, as they have freed up network which can be exclusively used for data.
At present voice ARPU stands below Rs 200, and in coming days there is no chance to increase the value. And data is eating up the revenue from voice as all diversions are merging to data. Well at the end it seems 4G with its huge capabilities has great future in India. In the next article we will discuss on data market – how it is changing!
PS: If you want to add more regarding India’s voice market, please drop comments.
Ayush January 25, 2013 at 11:23 am
The tariff hike is taking India back where it came . We will be underdeveloped country. if this continues to be like this. Comments are welcomed.
Sayantan January 24, 2013 at 12:15 am
Rudradeep,RDB…what’s your internship completion year?
dr.dre January 23, 2013 at 3:01 pm
“Voice is getting replaced by Skype, Viper, Nimbuzz, Blackberry Voice and so many VoIP.”
lol it’s VIBER not VIPER
Esmail January 23, 2013 at 2:50 pm
Kindly correct the spelling of Viber it has been typed as ‘Viper’
Tharun George January 23, 2013 at 1:15 pm
Since everyone has a smartphone and has data pack activated, Skype is the best option for long voice call.
But only problem is cannot put Voip online since it drains battery too much.
Arjun Chandrashekar January 23, 2013 at 11:52 am
In Future Days No Voice Calling You Can Make Video Calling / Data Downloading
Especially Aircel Is Revamping Their Business Because of This
SYAM January 23, 2013 at 11:40 am
Iam an internet user from kochi city, kerala. In my opinion , i would like to say that the data market is growing like anything. In India the mobile operators are now concentrates more on data. This will enables them to capture a new market among youth. The aggressive bidding of spectrum in 900 mhz will leads more operators to offer data services in a wider range. :p
HASHIM January 24, 2013 at 8:21 pm
but problem is, there is no service provider who have cheap data packs with 3g speeds. Now even 2g is costly. And in Rural Area Wireless Internet (3g,evdo) is Still a Dream. Dont know when 4g roll out. Lets Wait for it
Amit January 23, 2013 at 11:34 am
Airtel and Idea has increased its base tariff from Rs. 1 to 2 and Rs. 1.2 paisa/s to 2 paisa respectively. Source: ET News online.