05:49 pm - Sunday 24 September 2017

Telecom Service Providers focuses on low cost tariff offers to cope with pressure

By insightVAS - Thu Dec 27, 5:17 pm

To remain a fore runner in the steep competition, the telecom companies are coming up with different offers every other day. The youth makes a huge part of the consumers and to attract them, the telcos are offering low-cost tariff plans on data usage and freebies.

The telecom operators are using this as a tool to recover their sagging profit. The Indian mobile service providers are facing margin problems after the initial booming years. So to cope up with the pressure the telecom operators have adopted this means to enhance customer base.

Aircel is now offering free talk time at each purchase made at online shopping site Yebhi.com, while Reliance have tied up with Facebook and WhatsApp for monthly plans at an unimaginable price.

The major players like Bharti Airtel, Vodafone India and Idea Cellular in collaboration with Research In Motion (RIM) are offering BlackBerry Instant Messanger plans only at 129 per month to college students. It is a massive discount offered over the actual tariff plan of RIM.

Bharat Bambawale, Global Brand Director at Bharti Airtel believes the young generation spends more time over phone consuming data than voice. He also added that the young generation hardly makes a paid voice call but use WhatsApp or BlackBerry Messenger to stay in touch with friends.

This growing trend of data services is the result of falling prices of the smartphones. For last one year, the service provider companies have cut down the dealer commission, distribution costs and purge inactive customers to drive profitability in business. But they have ultimately found out that it’s the data services to rely on to bring in revenues as the Indian youngsters take internet-on-mobile.

Mary Meeker, Partner and Analyst at Kleiner Perkins Caulfield and Byers, said India reported a major hike in the number of smartphone users at 44 million people using in the fourth quarter of 2012, 52 percent more than the previous year.

The country is now at fifth position in smartphone usage.

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