Last year saw flurry of actvity to allow “incoming for life”.
The first salve was fired up by Tata’s with their offer of free incoming for 2 years. Bundled with a crappy handset, it did notch up some aquisitions. The exact quantum of the cusotmers isn’t known but Tata officials were grinning from ear to ear. So it might have well been worthwhile.
Airtel introduced the prepaid voucher, thus raising the stakes for others to follow. Within a span of two weeks, all others had “me too” schemes. The last (and laggard as usual) was BSNL. It was indeed surprising that it took it’s CMD to announce the scheme. It just shows the kind of importance that they have attached to it.
Now, how do they plan to make money? Simple. They would get the call termination charges from other networks. Albeit they are planning for a low margins, high volume game. However, the outgoing call charges are nearly double of other packages; simply because they have no other means to recoup their investments.
Why the “incoming for life” then? Scaling up customers for spectrum allocation. Simple. Though Tata’s were motivated by absolutely nothing to show off in their accounts. It was then vehemently opposed by COAI (the trade body of cellular operators) who termed it “ILLEGAL”! Well, why then they have eaten their own words? It’s called as “foot in the mouth disease”. According to TRAI’s norms, this scheme is valid for 3 months. Tata’s are nearing the end of the tenure for the same. The game has just started off for GSM fellows.
High outgoing call charges are seriously a dampener. This defeats the purpose of “low paying customer”, or affordable mobile. Still, as companies go on an advertising binge, they violate the advertising norms without disclosing the intended costs or the churn on the acquired customers if they fail to recharge.
Haven’t we seen this happening before?
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Jagan, mobile services providers only care about two things - profit and expansion (to get more profit).
I'm quite sure that these lifetime validity schemes are on unsound legal basis. Sure they are useful to low income workers as their employers can keep in touch with them but that just turns the cell phone into a pager, albeit one that can receive calls in addition to text messages.
I'm happy the TRAI has started to look into this.
Now, if they had introduced these plans with existing call and sms tariffs, it would have triggered a 'good' price and India would have the best rates in the world.
On a side now, Tata Indicom Walky has new plan rates.
Rs. 1.20 for 3 minutes to ANY mobile phone
Rs. 1.20 for 1 minute to other landline phones
This is a good plan for people who find themselves calling more cell phones than landlines.
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