Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
In recent time BSNL and MTNL, the state owned opeator duo have entered into several reverse bundling agreements with many device manufacturers. This is quite different approach, as many operators like MTS and Idea Cellular are bundling offers with their own branded device line up.
It can be noted that BSNL and MTNL both are in this approach from the very first, since the 3G sets in. BSNL has entered into reverse bundling agreements with different vendors – Micromaxc, Linkwell (VisionTek), Seuji ASPL (SkyNet 3G), Teracom and Shyam Network (Winknet) for 3G data cards; Magicon for 2G handsets; Pantel and Wishtel for tablets; Linkwell (VisionTek) and Shyam Network (Winknet) for 3G routers. In this approach the vendors adds BSNL SIM with the device and with the activation BSNL offers some free goodies, say free some data or talktime.
Airtel, Aircel, Vodafone, Reliance and Tata Docomo – almost all operators are offering voice and data bundles when a customer buys a specific handsets and activates his/her mobile number on their networks.
In US or Europe conventional bundling model works good, as the operators there offer the device at a heavy discount with 2 year long postpaid plans. The operators can offer subsidy as ARPU there is not low as in India and there is generally no breach of contract as the operators store the customers’ credit card details for auto payment at the end of the month.
In India majority of customers are prepaid, so operators have to change the bundling model – you buy a device from the list and activate your mobile number to get free goodies. There is no discount on phone price but you will get free talktime and data. In recent deals you can see every operators are adding data on the offers.