Still Full of Gaps

The voice tar­iff war among op­er­a­tors is lead­ing to the down­fall of ARPU which im­pacts TSPS’ op­er­a­tional cost op­ti­miza­tion for bet­ter qual­ity of ser­vice

Voice&Data - - VAS -

The telecom­mu­ni­ca­tions in­dus­try has con­trib­uted a lot and has acted as a cat­a­lyst to change our life in ur­ban and ru­ral so­ci­ety in the last one decade. In the last 24 months, the land­scape of the telecom­mu­ni­ca­tions in­dus­try has changed dras­ti­cally—the in­dus­try, which was our so­cio-econ­omy growth driver, is top­pling on a daily ba­sis, the profit mak­ing propo­si­tion has turned out to be a mon­ster which is get­ting out of con­trol.

The rea­sons for this de­ba­cle are many and most of the find­ings are not re­lated to tele­com op­er­a­tors’ ap­proaches nor the sub­scribers’ but the way this mar­ket has en­tered into a price war on voice tar­iff. It might be be­cause we have a reg­u­la­tion frame­work that is not fully tak­ing care of this in­dus­try for a smooth busi­ness model.

The big­gest con­trib­u­tor to this down­fall is voice tar­iff war and hunger to in­crease the sub­scriber base; the op­er­a­tors have gone into a strat­egy to pro­tect their sub­scriber’s bound­aries (MNP) and churn of sub­scriber base from one op­er­a­tor to an­other.

The voice tar­iff wars among op­er­a­tors are lead­ing to the down­fall of ARPU (Av­er­age Rev­enue Per Users) which im­pacts the TSPs’ (Tele­com Ser­vice Providers) op­er­a­tional cost op­ti­miza­tion for bet­ter qual­ity of ser­vice.

This ARPU war and pres­ence of a lot of play­ers in the same bound­ary of op­er­a­tions are forc­ing the TSPs to think dif­fer­ently and not to op­ti­mize the op­er­a­tional cost but to in­crease the ARPU from their sub­scribers.

In­tel­li­gent se­lec­tions and de­ploy­ment of the VAS ser­vices can save TSPs from the voice tar­iff war and at the same time in­crease the ARPU from their set of sub­scribers. The next decade will be of mo­bile data ser­vices de­ploy­ment which we may term as Mo­bile VAS on data plat­form.

If we an­a­lyze the mean­ing of VAS, it should be add VALUE to the sub­scribers as a ser­vice but as on date, we con­sider ser­vices start­ing from SMS (dif­fer­ent types) to video call as VAS. In real sense, what we are of­fer­ing to­day are all CAS (Cash Added Ser­vice) and till date our en­tire rev­enue model is based on these so called VAS and there is no equine model adopted by TSPs. Ev­ery TSP is of­fer­ing the same ser­vices and we are again in the same war as we are in for voice tar­iff plan.

There is no doubt that these present VAS ser­vices are keep­ing the TSPs on life

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