Educational technology ,careers and future : Why Minimum Monthly recharge to Continu Your Mobile services?

Monday, November 26, 2018

Why Minimum Monthly recharge to Continu Your Mobile services?

Telecom market in India is changing very rapidly , till few days ago nobody was worried about validity of his number except customer of BSNL , a public sector Enterprise. You buy a SIM and get lifetime validity , this is the way these telecom operators added such a huge number of Mobile customers .With the invent of dual SIM mobile phone most of the Indians were having two or more numbers, one for regular use and one for occasional use. With the entry of RJIO situation changed further, many  people used regular number  as an incoming number and RJIO for outgoing and DATA use.

Problem of Mobile operators(AIRTEL,VODAFONE, IDEA)

Before the entry of RJIO ,ARPU from customers was quite high nearly 200 Rs. as the data charges and call charges were high and interconnect charges were 14 paisa . Telecom operators were earning considerable amount from the customers who were using number for Just incoming only. But now scenario has completely changed. Unlimited calling plans have been launched due to the competition by RJIO at quite a low cost(Rs. 99 /28 days) , thus revenue for high calling users have already dropped and interconnect charges what operators get for an incoming call from other network has fallen to 6 paisa. The average revenue from customer using number only for incoming is  Rs 10 for six months and ARPU is falling by 4.7% quarterly. One  side expenditure of operators increasing due to investment in upgradation of network on the other hand revenue is declining.
  ARPU of Vodafone-idea has fallen to Rs. 88 while it is 101 for AIRTEL. RJIO is having highest ARPU of Rs.131.7 .

Steps taken by Operators to increase Revenue

 As the ARPU o the operators is falling 4.47% per quarter because of greater number of people using old number as incoming only, thus per user revenue from such customers is merely RS. 10 for six months by increasing revenue from these users operators trying to hold the decline of their revenue.
So AIRTEL ,IDEA and VODAFONE made, minimum recharge of Rs. 35 compulsory after every 28 days for every customer. In recharge of  Rs. 35 customers will get talk value of Rs. 26 for 28 days . Other than Rs. 35 , available recharge are Rs. 65 and Rs. 95 all offering validity for 28 days.

If customers fails to recharge  his after completion of his 30 days his outgoing calls will be stopped and in if no recharge done in next 15 days incoming facility of the customer will also be stopped .

Thus average revenue from such customers will be at least Rs. 35 per month for the operators .Total count of such customer’s is nearly 60 million, those  customers who failed to recharge their number will be closed permanently

Options Available for Customers

The only option available for the customers who do not want to spend minimum of Rs 35 for incoming services may port out there existing number to BSNL .BSNL offers six months validity on recharge of Rs. 36 with no balance,while recharge of Rs . 153 provides validity of one year and talk value of Rs. 100 & free PRBT for 28 days.

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