Tag Archives: voice-call-tariffs

Mobile Call Termination Charges Drop 30% – No Tariff War Soon

TRAIThe Telecom Regulatory Authority of India (TRAI) has reduced Termination Charges (TC) for all calls originating from and terminating to Wireless networks to INR0.14 per minute from INR0.20 per minute. In 2009, the Call Termination charges were revised from Rs 0.30 / Minute to rs 0.20 / Minute. As larger operators [A-Vo-Id Operators] are net receivers of these charges, it will have a marginal negative impact on incumbent operators. Direct impact of termination rate cut depends on the balance of off-net incoming and off-net outgoing minutes for an operator. We do note that the net interconnect revenues are not material for the incumbents even as net interconnect costs may be material for some of the challengers. Continue reading Mobile Call Termination Charges Drop 30% – No Tariff War Soon

Mobile Data to Cannibalize Voice – Airtel & Idea Strategies to Mitigate

Data Cannibalize VoiceIt requires no big brainier to tell as mobile data gains scale and penetrates relatively lower-income subscribers, it will start cannibalizing voice revenues. We expect this cannibalization of voice by data to start materializing during FY16. In this backdrop, incumbents need to increase their investments to build quality data-ready networks and launch of Reliance Jio Infocomm may well act as a trigger for that.

Strong Growth of Mobile Data
The strong data consumption growth augurs well for incumbent telecom players, but we think that data is not necessarily completely incremental to voice revenues Continue reading Mobile Data to Cannibalize Voice – Airtel & Idea Strategies to Mitigate

How Airtel, Vodafone & Idea Have Withdrawn Benefits Making Your Voice Calls Expensive ?

Airtel Vodafone Idea - Withdrawing STV BenefitsAirtel, Vodafone and Idea Cellular have time and again said that they’ll be slowly but surely trying to increase the Revenue Per Minute by withdrawing the benefits given to customers by means of Special Tariff Vouchers, Various Packs, etc. Most of the action was higher in local packs for on-net calls among others.

DSLIndia has done an Exclusive Market Research on all the STVs / Packs modified by Airtel in May 2013 and we’ll illustrate how these are helping the company boost their RPM and Margins.

Airtel in Andhra Circle Reduced the benefits on Seconds Pack of Rs29 from 2600 minutes to 2300 minutes which has translated to the company in increasing RPM by 13%.

Airtel in Gujarat Circle Minutes Reduced the Local Free Minutes from 100 to 50 on the Rs24 Pack, Validity Reduced from 7 to 4 Days thus translating at least 50% increase in RPM.

Vodafone in Delhi Reduced validity as well as free minutes on Rs 29 Pack from 97 Local mins to 75 free to Own Network and Validity reduced from 7 to 5 days, thus seeing an increase of 40% in RPM.

Idea in Maharashtra Circle, where it is the Market Leader has Increased cost of voucher of Local Pack of Rs34 to Rs 66 by maintaining the tariffs and validity.

We see such changes across the board based on Data Analytics Team. It is possible that while tariff hikes were taken in few vouchers, others were untouched, providing customers an opportunity to avoid the hikes. You can view the detailed price / tariff hike charts of Idea and Vodafone. This makes us believe that with a majority of vouchers now being subject to hikes, such opportunities to downtrade are limited for the consumer and thus has to pay more for the voice calls.