Sunday Talk: Stabilising Prepaid Data War, Focus Now Shifts to Postpaid and Broadband Sector

In our previous accounts of telecom news, we have reiterated numerous times about how the current situation in the telecom industry is expected to stabilise. Although the telecom operators might seem adamant in staying on their path of predatory pricing, the overall plans and pricing of the industry, in general, are all hanging around the same point. It is my opinion that the Idea-Vodafone merger has been a crucial factor in this regard, which lead to consolidation in the industry. With two more small telcos, one already bankrupt and the other standing on the verge of insolvency, no doubt remains that the reins of the entire industry now rests in the hands of a few telcos. Below I have gone over the reasons why the telecom industry is heading towards a stable state, with a particular focus on the prepaid data war.

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Prepaid Data War Showing Signs of Cooling Down

There was once a time, only a few months back where telecom operators were launching new and revised prepaid plans left, right and centre back to back. However, I can vouch that in the present scenario a different trend can be seen popping up in the industry. Instead of putting a laser focus on averaging new customers in the prepaid data segment, now telecom operators are looking at other areas to rake in new subscribers. According to my opinion, two most prominent areas in this regard include broadband and the postpaid plan segment.

The focus of the telcos, now instead of landing right on a single spot with full intensity has been spread over three different sectors. The announcement of the launch of Reliance Jio GigaFiber has only acted as a catalyst to fasten this shift. After taking a thorough look at the previous strategies of Reliance Jio which it has used to attack the market during its launch and other product roll-outs, I am sure that the Mukesh Ambani led telco will resort to predatory pricing and the attraction of free services to lure in the customers. If that is the case, which has already been reported by us, the increased efforts in the broadband sector by the other telcos most certainly makes sense.