Emergic: Rajesh Jain's Blog

Emergic: Rajesh Jain's Blog header image 2

A Perfect Storm for Mobile Operators

December 7th, 2009 · 13 Comments

Wikipedia defines “perfect storm” as “an event where a rare combination of circumstances will aggravate a situation drastically.” That is exactly what has happened to India’s mobile operators. Let’s look at what has happened, and then we will look ahead to see what to expect.

It all started with Tata Docomo using pay per second as its entry strategy into the GSM market a few months ago. As the lower part of the pyramid started shifting to it, the incumbents realized that they had little choice but to replicate that. About 20% or so of a telco’s voice revenues are derived from the rounding off of the billing to the nearest (higher) minute.

Next came the cut in roaming rates by 50-60%. Reliance then took the battle to SMS charges launching 1p SMS. In between, came the news of about 20% of users in India having multiple SIMs, which effectively enables them to switch operators.

Voice accounts for 90% of a mobile operator’s revenue, with SMS adding another 5%. The remainder comes under “value-added services” (VAS), with about 40% of that comprising of caller ringback tones (CRBT). From hearsay, even the CRBT absolute subscriber base has stagnated or has been dropping in the past months.

And there’s more to come.

Continued tomorrow.

Tags: Uncategorized

13 responses so far ↓

  • 1 A Perfect Storm for Mobile Operators Mobile Advertise // Dec 7, 2009 at 7:01 am

    […] more here:  A Perfect Storm for Mobile Operators By admin | category: mobile | tags: flat-rate-data, mobile, open-the-user, operators, […]

  • 2 A Perfect Storm for Mobile Operators | Mobile Metering // Dec 7, 2009 at 9:01 am

    […] is the original:  A Perfect Storm for Mobile Operators Tags: broader-mission, discuss-how, flat-rate-data, library-communications, open-the-user, […]

  • 3 Akshar // Dec 7, 2009 at 8:09 pm

    In last three years I used almost all service providers and realized that most of these battles are more of hype and less in delivering value to me.

    When Docomo announces per second billing I wonder if they have changed pricing/plans of some other services.

    A perfect storm for me would be some operator announcing an unlimited data download plan (if not 3g then gprs/EDGE at least) for something around Rs 150 per month. (may be 250 -400 for 3G).

    Just the way our governments believes in keeping us poor I am sure none of these operators actually want to provide a service of that kind. Even if 3G comes I fear they will use the additional spectrum for voice traffic instead of data.

  • 4 mandar // Dec 8, 2009 at 12:22 pm

    Nicely written.

    The pricing battle is really tough between operators. Airtel CEO Manoj Kohli had already expressed concerns over it. Lets see how long it goes. I feel it will be back to normal soon and every one will start raising the tariff.

    @Ankur – I am using Airtel’s mobile office plan from last 2 years. Its 200 rs. unlimited data transfer per month.

  • 5 Naveed // Aug 26, 2019 at 8:59 pm

    I have read your article, it is very informative and helpful for me.I admire the valuable information you offer in your articles. Thanks for posting it..
    banderas publicitarias

  • 6 Naveed // Sep 3, 2019 at 9:06 pm

    Nice post. I was checking constantly this blog and I am impressed! Extremely helpful information specially the last part I care for such info a lot. I was seeking this particular information for a very long time. Thank you and good luck.

  • 7 Naveed // Sep 8, 2019 at 6:39 pm

    Someone Sometimes with visits your blog regularly and recommended it in my experience to read as well. The way of writing is excellent and also the content is top-notch. Thanks for that insight you provide the readers!
    hampton bay

  • 8 vex // Oct 8, 2019 at 12:46 pm

    The article is very easy to understand, detailed and meticulous! I had a lot of harvest after watching this article from you! I found it interesting, your article gave me a new perspective! I have read many other articles on the same topic, but your article convinced me

  • 9 Naveed // Oct 13, 2019 at 12:01 pm

    Hi there! Nice stuff, do keep me posted when you post again something like this!
    does progentra work

  • 10 asimseo // Oct 20, 2019 at 1:01 pm

    Excellent article. Very interesting to read. I really love to read such a nice article. Thanks! keep rocking.
    học make up cơ bản

  • 11 asimseo // Oct 26, 2019 at 8:15 pm

    I have bookmarked your blog, the articles are way better than other similar blogs.. thanks for a great blog!
    tissu pas cher

  • 12 canada slipcovers // Nov 23, 2019 at 12:05 am

    This Is Really Great Work. Thank You For Sharing Such A Good And Useful Information Here In The Blog

  • 13 Naveedmughal // Dec 1, 2019 at 9:00 pm

    Thanks for this article very helpful. thanks.
    contratar detectives privados

Leave a Comment