India telecom operators have hiked the price of corporate SMS services. With the new development, all the overseas entities will be nearly charged $0.030 per message, which is almost 20 times higher than the price of domestic operators. As reported by ET Telecom, the decision might push foreign companies to look out for alternatives means of communications that would not burn their pockets. Some of the executives aware of the matter stated that foreign entities might resort to alternatives such as emails, in-app notifications, WhatsApp Business Messaging. Even though the entities will look out for alternatives, telecom operators will earn more revenue because of mission-critical messages.
International Entreprises Have The Capacity to Absorb Price Hike
Some of the renowned entities that will be under the new price hike regulation are Amazon, Uber, Facebook, Google, foreign banks and more. The price increase is expected that to reduce the traffic. Since most of the foreign banks have top tier customers who are regular users of Whatsapp Business and email, the entities will look forward to switching the communication platform.
However, as marked by an unknown telecom operator, international enterprises have the capacity to absorb price hike. The Indian market still offers the lowest rates in the world. The separate rates rolled out by telecom operators for domestic and international entities are concerning for the international players. The enterprises are disliking the fact of being labelled as international despite having complete Indian operations.
Telecom Operators are Eyeing High ARPU Entreprises Customers
The competition among telecom operators in the Indian market is rigid and stuff. Since there are ample service providers in the market offering lucrative plans and offers, it is difficult for telcos to increase rates. However, telecom operators are planning to redevelop their retail tariff plans with slashed data limits at increased prices. To increase the ARPU, telcos are bumping up the validity period and closing high ARPU enterprise customers. Gopal Vittal, CEO of Airtel, stated that the telco has doubled down on its enterprise business by revamping its product portfolio and channels. Back in December 2020, Airtel nearly bagged 31% enterprise market share.